Shenzhen-Hong Kong Stock Connect to Launch on 5 December 2016

Julia CharltonPartner, Charltons

Shenzhen-Hong Kong Stock Connect to Launch on 5 December 2016

Shenzhen-Hong Kong Stock Connect (Shenzhen Connect) launches on Monday, 5 December 2016.

Modelled on the Shanghai-Hong Kong Stock Connect scheme (Shanghai Connect) that has been in place since November 2014, Shenzhen Connect is a much anticipated channel for Mainland investors to trade in Hong Kong-listed stocks and for Hong Kong and international investors to invest directly in Shenzhen-listed stocks. Hong Kong and international investors will be offered new opportunities for direct investment in stocks listed on the Shenzhen Stock Exchange (SZSE) which ranks as the world’s 8th largest stock market both in terms of market capitalisation (US$ 3.3 trillion at 30 September 2016) and in terms of IPO funds raised – IPOs on the SZSE raised US$ 4.2 billion in the first three quarters of 2016. Significantly, Shenzhen Connect will offer international investors a broader range of Chinese companies for investment, with opportunities for institutional (but not retail) investors to buy stocks listed on Shenzhen’s ChiNext market which caters for tech and other innovative companies. Shenzhen Connect will offer Mainland investors a broader investment scope, while Hong Kong-listed companies will benefit from a larger investor pool.Read more …


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