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 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.