The new programme represents the first time foreign investors can access China A-Shares, via depository receipts, outside of the Greater China region.
Tag: Stock Connect
ETF Connect, expected to launch last year, had struggled to overcome a number of technical issues concerning differences in trading and settlement mechanisms.
It is now more than likely that the London-Shanghai Stock Connect trading scheme will be up and running, with a go-live date pencilled in for December.
HKEX will trial the technology to help complete post-trade allocations and processing for northbound trades under Stock Connect within a tight settlement window.
China's inclusion into the MSCI Emerging Markets Index has driven a dramatic increase in foreign institutions opening up special segregated accounts (SPSAs).
Positive sentiment to investing in China has largely been influenced by clearer and more flexible access schemes for foreign investors.
The launch of the service follows the go-live of China A-Shares on the MSCI Emerging Markets Index for the first time.
Around 70% of the nearly 230 mainland-traded stocks joined MSCI’s emerging markets and global indexes on Friday.
Regulators are planning to include ETFs to the China-Hong Kong Stock Connect trading programme potentially by the end of the year.