The 10th Anniversary of Shanghai-Hong Kong Stock Connect Marks the Firm Progress in Institutional Opening up of Capital Market

Today, the HKEX Connect Summit was held in Hong Kong, China. Relevant officials from China Securities Regulatory Commission (CSRC) and Securities & Futures Commission (SFC) of Hong Kong, Shanghai Stock Exchange (SSE), Shenzhen Stock Exchange (SZSE), and the Stock Exchange of Hong Kong (HKEX) attended the summit. Wu Qing, Chairman of the CSRC, delivered a speech via video; Li Ming, Vice Chairman of the CSRC, attended the summit and delivered a speech; Qiu Yong, Chairman of the SSE, congratulated the meeting via video; Cai Jianchun, President of the SSE, delivered a keynote speech at the summit and discussed with the participants on trends and prospects of financial market connectivity.

This year marks the tenth anniversary of the launch of the Connect program for stock trading in the Shanghai and Hong Kong markets. Since the opening of the Shanghai-Hong Kong Stock Connect program, under the guidance of the CSRC, Mainland markets have joined hands with Hong Kong markets to create a new model of cross-border securities investment and explore a new path of high-level financial opening-up. Over the past decade, the SSE has implemented the Party's strategic decision of two-way opening-up of the capital market, adhered to its commitment and faith in opening up to the outside world and comprehensively deepening reforms, kept pace with the times in terms of rules, regulations, management, and standards, and provided innovative experience for high-level institutional opening up.

Since the opening of Shanghai-Hong Kong Stock Connect, the total turnover of foreign capital through Northbound Stock Connect has reached RMB 70 trillion. The average daily turnover of Northbound Stock Connect has increased significantly from RMB 4.7 billion in the first month after its opening in 2014 to RMB 128.3 billion at present; On the southbound, Chinese mainland investors' total turnover through Southbound Stock Connect reached RMB 27 trillion. The average daily turnover of Southbound Stock Connect at the SSE increased from HK$ 800 million in the first month after its opening in 2014 to HK$ 50.9 billion at present. The average daily turnover of the Northbound Stock Connect and Southbound Stock Connect has accounted for 5.8% and 18.4% respectively in the Shanghai A-share market and Hong Kong stock market. Up to now, there are 1,349 stocks and 143 ETFs under the Northbound Stock Connect. The market value coverage ratio of shares under the Northbound Stock Connect has reached 88.4%. There are 545 stocks and 17 ETFs under the Southbound Stock Connect. The market value coverage ratio of shares under the Southbound Stock Connect has reached 87.8%. 293 SSE STAR Market stocks have been included in the scope of the Shanghai-Hong Kong Stock Connect, enhancing the international appeal of China's innovation sector.

Looking back on the past decade, under the unified guidance of the CSRC, the Shanghai-Hong Kong Stock Connect program has kept developing, with more underlying securities, more types of products and better trading mechanisms. In 2016, the total quota limit was canceled. In 2018, the daily quota was quadrupled in both ways; in 2019, the shares of companies with different voting rights structures were included in the underlying securities. In 2020, biotechnology companies listed in Hong Kong were included in the Southbound Stock Connect. In 2021, the stocks on the SSE STAR Market were included in the scope of the Shanghai-Hong Kong Stock Connect. In 2022, ETF products were included in the underlying securities. In 2023, the tradable calendar was expanded in both ways. The scope of underlying securities has been greatly expanded and foreign companies were allowed to be included in the Southbound Stock Connect. In 2024, the CSRC announced five measures to boost capital market cooperation with Hong Kong, reaffirming that it would further expand and optimize the Connect program between the Chinese mainland and Hong Kong SAR.

Opening-up is a defining feature of Chinese modernization. Chinese modernization has been advancing through reform and opening up, and will show vast prospects continuing this cause. In the next decade, the SSE will continue to pursue development through reform, enhance quality and efficiency through reform, and promote opening-up through reform. We will work hand in hand with the HKEX and SZSE under the guidance of the CSRC and SFC to optimize the Connect program, deepen financial cooperation and openness between the two regions, better serve domestic and foreign investors, and ensure that all kinds of funds are "willing to come, stay, and thrive", in order to jointly promote mutual benefit and win-win results in both capital markets, contribute to the high-quality development of the capital market and Chinese modernization, build an open, inclusive, and efficient market ecosystem with domestic and foreign investors, and share the fruits of China's high-quality economic development.