China Securities Regulatory Commission to expand numbr of stock eligible for Stock Connect

China Securities Regulatory Commission (CSRC) is the regulator of the securities industry in the country.

• Its said it’ll be expanding the scope of stock eligible to trade via Stock Connect.

Shanghai-Hong Kong Stock Connect is one:

• a mutual market access program through which investors in each market can trade shares on the other market directly
• launched in 2014
• Northbound Trading allows international and Hong Kong investors to trade eligible shares listed on the Shanghai Stock Exchange via the Hong Kong Stock Exchange.
• Southbound Trading allows mainland Chinese investors to trade eligible shares listed on the Hong Kong Stock Exchange via the Shanghai Stock Exchange.
• The Shanghai-Hong Kong Stock Connect allows foreign investors to access China’s A-shares market (shares in mainland China-based companies that were previously difficult for foreign investors to access) and it allows mainland Chinese investors to access the Hong Kong market.

In addition to the Shanghai-Hong Kong Stock Connect, there is also the Shenzhen-Hong Kong Stock Connect

• launched in 2016
• links Shenzhen Stock Exchange with the Hong Kong Stock Exchange in a similar way

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