Clifford Chance
Shanghai-Hong Kong Stock Connect: China opens the way for global investors in Chinese equity
17 November 2014
Today marks a significant milestone in the internationalisation of the Renminbi ("RMB") and the liberalisation of the Chinese financial markets. The launch of the Shanghai-Hong Kong Stock Connect programme ("Stock Connect") on 17 November 2014 is the culmination of over 7 months of preparatory work by regulators, exchanges, broker-dealers and investors after the joint announcement made on 10 April 2014 by the China Securities Regulatory Commission ("CSRC") and the Hong Kong Securities and Futures Commission ("SFC").
The establishment of mutual market access between the Shanghai Stock Exchange ("SSE") and The Stock Exchange of Hong Kong ("SEHK") represents the first time that two stock exchanges have linked up in this manner. The Stock Connect programme provides a number of unique opportunities and challenges for market participants, and Clifford Chance has been fortunate to have the opportunity to work with the Asia Securities Industry & Financial Markets Association and many market participants on this project. This client briefing sets out some of our key observations and insights from our work on Stock Connect.
