Asian markets holidays reminder – Hong Kong is closed today

It’s a Hong Kong public holiday for the day following the Chinese Mid-Autumn Festival

• Hong Kong Market is closed
• Both Northbound and Southbound Stock Connect trading is closed

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China / Hong Kong Stock Connect is a mutual market access program that allows investors in mainland China and Hong Kong to trade and invest in each other’s stock markets. This initiative aims to facilitate cross-border trading, broadening market access for international investors and providing more liquidity to both markets. Here’s a breakdown:

1. Two Main Programs:

   • Shanghai-Hong Kong Stock Connect (launched in 2014): Connects the Shanghai Stock Exchange (SSE) with the Hong Kong Stock Exchange (HKEX).
   • Shenzhen-Hong Kong Stock Connect (launched in 2016): Connects the Shenzhen Stock Exchange (SZSE) with HKEX.

2. Northbound Trading: Allows international and Hong Kong investors to buy eligible shares listed on the Shanghai and Shenzhen exchanges through the HKEX.

3. Southbound Trading: Enables mainland Chinese investors to trade eligible shares listed on the Hong Kong Stock Exchange through the SSE or SZSE.

4. Quota Systems: The program initially had daily and aggregate quotas for trading to ensure controlled market access, though the aggregate quota was later removed in 2018. Daily quotas still limit the amount of money that can flow in and out each day.

   In summary:

   • Provides foreign investors access to China’s A-share market.
   • Allows mainland Chinese investors to diversify their portfolio with Hong Kong-listed stocks.
   • Promotes market integration and opens up new opportunities for both retail and institutional investors.

This article was written by Eamonn Sheridan at www.forexlive.com.