Thu. Mar 4th, 2021

Regulation HK

Financial Regulator

Stock Connect to Include STAR Market Stocks from 1 February

2 min read

The corresponding H-shares will also be included in Southbound trading of Stock Connect, in addition to H-shares with corresponding A-shares listed in Shenzhen.

HKEX (Hong Kong Exchanges and Clearing) has announced the inclusion of eligible A-shares listed on the Shanghai STAR Market into Stock Connect, effective from 1 February.

In November, an agreement was reached between HKEX, the SSE (Shanghai Stock Exchange) and SZSE (Shenzhen Stock Exchange) on an expansion to the existing Stock Connect inclusion arrangements.

Under the agreement, STAR Market-listed companies that are constituents of the SSE 180 Index and SSE 380 Index, or have corresponding H-shares listed in Hong Kong, will be eligible for Northbound trading under Shanghai-Hong Kong Stock Connect. The corresponding H-shares will also be included in Southbound trading of Stock Connect.

Given the STAR Market’s special investor eligibility requirements, STAR Market-listed shares will only be accessible via Northbound Stock Connect trading by institutional professional investors.

In addition, the trading arrangements for STAR Market stocks – including the daily price limit, maximum and minimum order sizes, and board lot sizes – are different from those for the SSE Main Board stocks.

HKEX also said H-shares with corresponding A-shares listed on the SZSE will be tradable through Southbound trading of Stock Connect starting 1 February 2021.

The SSESZSE, and HKEX have each amended their rules to implement the changes. Updated information on list of stocks available via Stock Connect is available here.

“The three exchanges will continue to work closely to further enhance the Stock Connect programme to benefit Mainland, Hong Kong, and international investors,” HKEX said in a statement.

An optional Post Release Test (PRT) for exchange participants will be held on 30 January 2021. Firms wishing to participate have to register by 28 January.

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