Inclusion of ETFs in Stock Connect between Mainland and Hong Kong Markets Officially Approved to Launch

According to a joint announcement issued today by the China Securities Regulatory Commission (CSRC) and the Hong Kong Securities and Futures Commission (SFC), the inclusion of ETFs in the Stock Connect Mechanism between the markets in China’s mainland and Hong Kong (hereinafter referred to as the Stock Connect) has been approved and will be officially launched on July 4, 2022. As a landmark achievement in the upgrading of the Stock Connect, the move also marks another important breakthrough in continuously strengthening the reform of the capital market and advancing high-standard opening up.

The relevant business rules for the inclusion of ETFs in the Stock Connect, released earlier by the SSE, clarified the conditions for the inclusion of ETFs, adjustment mechanisms, trading arrangements and other matters to the market. Meanwhile, in order to ensure that the market is well prepared, the SSE has organized market participants to make further preparations for the launch of the business, worked with the member institutions to carry out multiple process tests for the trading system, and urged members to strengthen internal control and risk prevention. At present, business and technology preparations have generally been completed for the inclusion of ETFs into the Stock Connect.

Going forward, with the unified deployment of the CSRC, the SSE will continue to make effective preparations for the official inclusion of ETFs into the Stock Connect to ensure the successful launch and smooth implementation of the inclusion.

Attachment: Notice of Implementing the First Inclusion for Including ETFs into the Hong Kong Stock Connect