SFC and CSRC Announce the Launch of ETF Connect

The Securities and Futures Commission (SFC) and the China Securities Regulatory Commission (CSRC) have issued a joint announcement on the launch of ETF Connect. Trading of exchange-traded funds (ETFs) under Mainland-Hong Kong Stock Connect will commence on 4 July 2022.

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"ETF Connect is an important milestone because for the first time Stock Connect is expanded beyond stock trading," said Mr Ashley Alder, the SFC's Chief Executive Officer. "It will catalyse Hong Kong's growth as an ETF hub and underscore Hong Kong's unique role connecting global capital with the Mainland."

The SFC and the CSRC have agreed on arrangements for cross-boundary regulatory cooperation and investor education in relation to the inclusion of ETFs in Stock Connect and will enhance cooperation on enforcement against cross-boundary illegal activities and market misconduct to maintain an orderly market and protect investors.

The announcement comes after the SFC fined CES Capital International (Hong Kong) Co., Limited (CESHK) $3.2 million over its failure to discharge its duties as an investment manager of two funds between February 2015 and July 2017.