Stock Connect Kicks Off
Monday, November 17, 2014The much anticipated Shanghai-Hong Kong Stock Connect scheme was launched on November 17. The scheme is of historic significance to both Hong Kong and Mainland stock markets. Now, institutional and retail investors in Hong Kong and from overseas can invest directly in eligible Mainland A-shares, while qualified Mainland investors can invest in eligible Hong Kong stocks. Meantime, the Renminbi (RMB) daily conversion cap for Hong Kong residents was also lifted, enabling them to fully participate in Stock Connect and other RMB financial transactions.
The scheme, which aligns the Mainland market with international markets and expedites the internationalisation of the RMB, reinforces Hong Kong's status as the super-connector to and from China. It is the latest demonstration of the Central Authority's support to boost Hong Kong's position as an international financial centre.