HKEX to Include ETFs into Stock Connect

​Fazzaco learned that Hong Kong Exchanges and Clearing Limited (HKEX) has included Exchange Traded Funds (ETFs) into Stock Connect, effective from Monday, 4 July 2022, according to the joint announcement issued yesterday (Tuesday) by the Hong Kong's Securities and Futures Commission (SFC) and the China Securities Regulatory Commission (CSRC).

Before the announcement, HKEX, Shanghai Stock Exchange (SSE), Shenzhen Stock Exchange (SZSE) and China Securities Depository and Clearing Corporation (CSDC) have reached agreement on the Stock Connect inclusion and trading arrangements, as well as eligibility criteria for ETFs​.

According to HKEX, all Hong Kong and overseas investors including institutional and individual investors will,  for the first time, have access to trading of eligible SSE-listed ETFs through Shanghai Connect and trading of eligible SZSE-listed ETFs through Shenzhen Connect once the inclusion goes into effect. 

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Furthermore, HKEX has published the initial list of ETFs eligible for Northbound trading on its website and the list will be updated based on reviews every six months.

To benefit Mainland, Hong Kong and international investors, HKEX noted that it will ensure the success of the ETF inclusion via further close work with its Mainland exchange partners.

HKEX has recently launched its new VaR Platform for post-trade clients​, as Fazzaco reported previously.