According to a joint announcement issued by the China Securities Regulatory Commission and the Hong Kong Securities Regulatory Commission, ETF trading under the Connect will begin on July 4. The Shanghai and Shenzhen Stock Exchanges stated that the preparations for the incorporation of ETFs into the interconnection mechanism, including business and technology, have been basically completed. The industry believes that this will provide more convenience for foreign investors to invest in A shares.
[Shenzhen Business Daily](Reporter Zhan Yuye) According to the announcement of the Shanghai, Shenzhen and Hong Kong exchanges, there are 87 ETF targets included in the first batch of interconnection, of which mainland investors have passed the southbound Shanghai-Hong Kong Stock Connect and the southbound Shenzhen-Hong Kong Stock Connect. , 4 Hong Kong stock ETFs can be purchased respectively; Hong Kong investors can buy 83 A-share ETFs through the northbound Shanghai-Shenzhen Stock Connect.
The initial list of Northbound eligible ETFs released by the Hong Kong Stock Exchange includes 30 ETFs, including China AMC CSI 300 ETF, GF CSI 300 ETF, and Penghua CSI National Defense ETF, covering core broad-based products such as ChiNext ETF, CSI 300 ETF, and biotechnology ETFs. , chip ETF, carbon neutral ETF and other representative industry themed products. The Shanghai and Shenzhen Stock Exchanges announced that the Hong Kong Stock Connect ETFs in the list are 4 stock ETFs including Transcript Fund, Hang Seng China Enterprises, Southern Hang Seng Technology and Anshuo Hang Seng Technology.
It is worth noting that the interconnection ETF can only be traded in the secondary market, and subscription and redemption are not allowed. From the perspective of investment quota, the ETF investment quota is calculated and managed together with the stock investment quota, that is, the daily quota of 52 billion yuan per day in the north and 42 billion yuan per day in the south.
In recent years, the CSRC has promoted the interconnection of financial markets and financial infrastructure between the Mainland and Hong Kong in an orderly manner. The Shanghai-Hong Kong Stock Connect and Shenzhen-Hong Kong Stock Connect mechanisms were launched on November 17, 2014 and December 5, 2016, respectively. Data show that as of the end of May this year, the total net inflow of funds from Shanghai and Shenzhen Stock Connect was about 1,633.4 billion yuan, and the total net inflow of funds from Hong Kong Stock Connect was about 2,009.8 billion yuan.
Xu Kang, a researcher at Huachuang Securities, pointed out that the impact of the expansion of the interconnection between the two places to stock ETFs includes enriching the Shanghai-Shenzhen-Hong Kong Stock Connect market portfolio and slightly increasing market activity. This will increase investment opportunities for foreign capital to participate in the A-share market and further attract foreign investment.
Lv Sijiang of Huaxin Securities Research Institute believes that although the included ETFs are only traded in the secondary market and will not directly bring additional OTC shares to the product, the activity and liquidity on the exchange will increase, and it is expected that the arbitrage mechanism will be adopted in the future. It will push up the purchase of off-market shares, thereby driving the increase in product scale. From the structural point of view, the current shortlisted products have more high-end manufacturing and pharmaceutical products such as new energy and semiconductors, except for broad-based products. Return to Sohu, see more
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