The Shanghai Stock Exchange Issues Business Guidelines to Clarify the Reporting Requirements for Program Trading by Investors in the Shanghai Stock Connect

On July 11, 2025 the Shanghai Stock Exchange (SSE) issued the Guidelines for the Application of Securities Trading Rules of the Shanghai Stock Exchange No. 2 - Program Trading Report of Investors in the Shanghai Stock Connect (hereinafter referred to as the Reporting Guidelines), which included investors in the Shanghai Stock Connect in the scope of program trading reports in accordance with the principle of consistency between domestic and foreign investment. This is an important measure for the SSE to implement the provisions on program trading reports in the Securities Law, Regulations on Management of Program Trading in the Securities Market (Trial Implementation) and Implementation Rules for Program Trading Management of the Shanghai Stock Exchange, which will help further consolidate the foundation of program trading supervision, comprehensively grasp the situation of program trading in the SSE, better promote the standardized development of program trading, and maintain securities trading order and market fairness.

The SSE previously solicited public opinions on the Reporting Guidelines and has carefully reviewed the feedback from relevant market institutions and investors. The Reporting Guidelines establish reporting requirements for investors engaged in program trading under the Shanghai Stock Connect, aligning them with the overall reporting standards for domestic investors, while taking into account the practical differences between the Chinese mainland and Hong Kong markets. Certain provisions and data entry fields have been adjusted to accommodate these differences, and adequate time has been provided for market participants to prepare. In terms of reporting entities, the report will be based on the Northbound investor identification code (BCAN). Regarding the reporting process, Northbound investors are required to report to Hong Kong brokers, who will then submit the reports to the SSE via the Hong Kong Stock Exchange. The content of the reports and regulatory requirements will align with those for domestic investors. In the case of violations of certain provisions, such as failure to report or update reports as required, or providing incomplete information, the SSE may request the Hong Kong Stock Exchange's assistance in taking appropriate regulatory measures or disciplinary actions. As for the implementation time, the Reporting Guidelines will be officially implemented since January 12, 2026. Within three months of implementation, existing investors must complete their reporting.

Moving forward, under the overall coordination of the CSRC, the SSE will further strengthen cross-border regulatory cooperation with the Hong Kong Stock Exchange, carry out training in a timely manner, interpret the rules well, and ensure the smooth implementation of the Reporting Guidelines.