The China Securities Regulatory Commission (CSRC) and the Hong Kong Securities and Futures Commission (SFC) have reached consensus on the introduction of block trading (manual trades) under the mutual stock market access arrangements between the Mainland and Hong Kong (Stock Connect). The initiative will further enhance the Stock Connect arrangements, make available more trading mechanisms, enhance trading efficiency, and promote the mutual development of both capital markets (Note 1).
Under Stock Connect, offshore investors will be able to conduct block trades on the Shanghai Stock Exchange and the Shenzhen Stock Exchange through the northbound trading link while Mainland investors will be able to conduct manual trades on the Stock Exchange of Hong Kong Limited (SEHK) through the southbound trading link. Both northbound and southbound block trading will be introduced at the same time.
The CSRC and the SFC will supervise the respective exchanges and clearing houses on both sides in studying the business, technical and regulatory arrangements for the introduction of block trading (manual trades), conducting market consultation as appropriate and developing an implementation proposal.
The respective stock exchanges will announce the implementation details and the official launch date in due course.
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Note:
- Manual trades refer to trades conducted outside SEHK's trading system and reported to SEHK.
Last update: 11 Aug 2023