Shanghai-Hong Kong Stock Connect Program to Launch Mid-December

Last week, the China Securities Regulatory Commission (CSRC) and the Securities and Futures Commission (SFC) announced that were approving the deployment of a stock connect Bridge Bridge The bridge or liquidity bridge is an essential component for brokers that are enabling their clients to trade at interbank rates directly via a Prime Broker or a Prime-of-Prime (PoP). While market makers do not require a bridge in order to service its clients, brokers which are sending through orders to a liquidity provider or an electronic execution venue need a bridge to connect their trading platform to the interbank market.Bridges are used extensively in forex trading, specifically for Metat The bridge or liquidity bridge is an essential component for brokers that are enabling their clients to trade at interbank rates directly via a Prime Broker or a Prime-of-Prime (PoP). While market makers do not require a bridge in order to service its clients, brokers which are sending through orders to a liquidity provider or an electronic execution venue need a bridge to connect their trading platform to the interbank market.Bridges are used extensively in forex trading, specifically for Metat Read this Term between Shenzhen and Hong Kong.

The move was designed to boost the development of capital markets in mainland China by connecting all the country’s stock exchanges – Hong Kong, Shanghai and Shenzhen - and to provide more open access to capital markets in the country.

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Finance Magnates today learned that China is aiming to launch the highly-anticipated stock-trading link in mid-December, according to a report in The Wall Street Journal.

Mid-December Launch

Chinese authorities were originally considering launching the program in the second half of last year, but abandoned their plans after the stock-market crash in the summer.

The Shenzhen stock-link program has been long-awaited following the launch of the Shanghai-Hong Kong Stock Connect in November 2014. This allows foreign investors to tap into China’s largest blue-chip companies listed on the Shanghai Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term and gives Chinese investors unprecedented access to the Hong Kong market.

The Shenzhen link will put around 880 stocks, accounting for more than $1 trillion in market capitalisation on offer to global investors.

The ChiNext, a listing board focused on fast-growing startups, will also be opened up although it will be limited to professional institutional investors.

Global investors can presently purchase up to 300 billion yuan worth of shares in over 500 Shanghai companies. Regulators have said that under the new stock link scheme, there will no longer be an upper limit on the total amount of Chinese shares foreigners can hold.