Move to attract more global investors

One after another, measures are being taken to promote the trading links between the capital markets on the Chinese mainland and in the Hong Kong Special Administrative Region and take effective action against illegal activities.

The launch of the Shenzhen-Hong Kong Stock Connect on Monday signals not only the extending of mutual access to the mainland and Hong Kong stock markets but also the further strengthening of cooperation between the China Securities Regulatory Commission and the Hong Kong Securities and Futures Commission to maintain market order and protect investors.

Similar to their arrangements for the Shanghai-Hong Kong Stock Connect, the first channel allowing mutual access for eligible investors that has been operating smoothly since it was officially launched in November 2014, the two regulators have agreed and signed a memorandum of understanding on the principles and arrangements for their regulatory and enforcement cooperation to protect the integrity of both markets, including real-time surveillance by the two watchdogs of the activity in their respective markets. And with contingency plans in place for various eventualities and the two stock exchanges and the clearing houses having completed a series of market rehearsals, both regulators are confident the system is good to go.