CSRC pushes broader Stock Connect access

Regulators are accelerating preparations to include renminbi-denominated stock trading counters and real estate investment trusts (REITs) in the Shanghai-Hong Kong and Shenzhen-Hong Kong stock connect programs, as part of broader efforts to deepen capital market cooperation between the Chinese mainland and Hong Kong.

Speaking at the launch of RMB-denominated government bond futures in Hong Kong on Monday, China Securities Regulatory Commission Chairman Wu Qing said CSRC is working closely with its Hong Kong counterparts to advance preparations.

Wu also pledged support for closer cooperation between mainland and Hong Kong index providers to develop more China-focused indices, while encouraging the launch of more exchange-traded funds tracking the mainland and Hong Kong markets.

He said the CSRC will optimize ETF registration mechanisms and support Hong Kong in introducing more RMB-denominated and RMB-settled futures products.

The commission will continue supporting companies seeking listings in each other's market, Wu added. Eligible Hong Kong companies will also be encouraged to issue bonds in the mainland.

Since 2024, more than 270 mainland companies have completed filings for Hong Kong listings, raising over HK$650 billion ($82.9 billion). Mainland firms now account for about 80 percent of Hong Kong-listed companies' market capitalization and 90 percent of market turnover, according to Wu.