In order to promote the development of the capital markets in the Mainland and Hong Kong, the China Securities Regulatory Commission (hereinafter referred to as the China Securities Regulatory Commission) and the Hong Kong Securities and Futures Commission (hereinafter referred to as the Hong Kong Securities Regulatory Commission) decided to approve the Shanghai Stock Exchange, The Stock Exchange of Hong Kong Limited, China Securities Depository and Clearing Co., Ltd. and Hong Kong Securities Clearing Co., Ltd. to officially launch the pilot project of the Shanghai-Hong Kong Stock Connect (hereinafter referred to as the Shanghai-Hong Kong Stock Connect). The stock trading under the Shanghai-Hong Kong Stock Connect will start on 20141017. The announcement is as follows:
1. Since the China Securities Regulatory Commission and the Hong Kong Securities Regulatory Commission issued a joint announcement on April 20 18 14, the regulatory agencies of the two places have made concerted efforts in all preparations for the launch of Shanghai-Hong Kong Stock Connect. At present, the relevant business rules, operation plan, settlement and quota management of Shanghai-Hong Kong Stock Connect have been determined, the technical system is ready, market cultivation and investor education have achieved good results, and targeted emergency plans have been formulated.
2. The China Securities Regulatory Commission and the Hong Kong Securities Regulatory Commission reached an understanding on the principles and specific arrangements of cross-border regulatory cooperation involved in the Shanghai-Hong Kong Stock Connect project, and signed the Memorandum between the China Securities Regulatory Commission and the Hong Kong Securities Regulatory Commission on Strengthening Supervision and Law Enforcement Cooperation under the Shanghai-Hong Kong Stock Connect Project, so as to strengthen law enforcement cooperation between the two sides, take effective actions, severely crack down on all kinds of cross-border violations, maintain the normal operation order of Shanghai-Hong Kong Stock Connect and protect the legitimate rights and interests of investors.
The China Securities Regulatory Commission and the Hong Kong Securities Regulatory Commission have entered into regulatory cooperation arrangements and procedures to properly handle major or unexpected events in the pilot process in a timely manner, so as to ensure smooth complaint channels and effectively and conveniently handle appeals between the two places.
The two places have reached cooperation arrangements on investor education of Shanghai-Hong Kong Stock Connect, and continue to do a good job in investor education and investment knowledge dissemination of Shanghai-Hong Kong Stock Connect.
Three, the two exchanges, securities trading service companies and registration and settlement institutions shall perform the duties of Shanghai-Hong Kong Stock Connect in accordance with the law, and organize all parties in the market to carry out the Shanghai-Hong Kong Stock Connect business in an orderly manner. Securities companies (or brokers) should abide by relevant regulatory provisions and business rules, strengthen internal control, prevent and control risks, do a good job in investor education and service, and earnestly safeguard the legitimate rights and interests of investors. Investors should fully understand the differences in market laws, regulations, business rules and actual operations between the two places, carefully assess and control risks, and rationally invest in Shanghai-Hong Kong Stock Connect.
All parties in the market should make good use of the time before the official launch to make further preparations to ensure the smooth development of the Shanghai-Hong Kong Stock Connect pilot.