On April 14, China Securities Regulatory Commission and Hong Kong Securities Regulatory Commission issued the Joint Announcement of China Securities Regulatory Commission and Hong Kong Securities Regulatory Commission. Decided to approve in principle the Shanghai Stock Exchange (hereinafter referred to as SSE), The Stock Exchange of Hong Kong Limited (hereinafter referred to as SEHK), China Securities Depository and Clearing Co., Ltd. (hereinafter referred to as China Clearing Co., Ltd.) and Hong Kong Securities Clearing Co., Ltd. (hereinafter referred to as Hong Kong Clearing Co., Ltd.) to carry out the pilot project of Shanghai-Hong Kong stock market trading interconnection mechanism (hereinafter referred to as Shanghai-Hong Kong Stock Connect).

Shanghai-Hong Kong Stock Connect, that is, the interconnection mechanism of Shanghai-Hong Kong stock market transactions, refers to the securities trading service companies established by investors in the two places through the Shanghai Stock Exchange or the other stock exchange, and entrusts members of the Shanghai Stock Exchange or exchange participants to buy and sell stocks listed on the other stock exchange within the prescribed scope. Shanghai-Hong Kong Stock Connect includes Shanghai Stock Connect and Hong Kong Stock Connect.

Shanghai Stock Connect means that investors entrust the participants of the stock exchange to report to the Shanghai Stock Exchange through the securities trading service company of the stock exchange and buy and sell the stocks listed on the Shanghai Stock Exchange within the prescribed scope.

Hong Kong Stock Connect means that investors entrust members of the Shanghai Stock Exchange to report to the exchange through the securities trading service company of the Shanghai Stock Exchange and buy and sell stocks listed on the Shanghai Stock Exchange within the prescribed scope.

China Clearing and Hong Kong Clearing are clearing participants and provide corresponding settlement services for Shanghai-Hong Kong Stock Connect.