China Securities News (Reporter Huang Lingling) On June 24, the Shenzhen Stock Exchange issued a notice saying that in order to further enrich the trading varieties, standardize the trading behavior of Shenzhen Stock Connect, and continue to optimize the interconnection mechanism, with the approval of the China Securities Regulatory Commission, the Shenzhen Stock Exchange The relevant provisions of the Implementation Measures for Shenzhen-Hong Kong Stock Connect Business (hereinafter referred to as the “Implementation Measures”) have been revised and issued. The “Implementation Measures” shall come into force on the date of promulgation.
The main revisions of the “Implementation Measures” are as follows: First, clarify the specific arrangements for ETFs to be included in the interconnection target. Include the eligible Shenzhen Stock Exchange and Stock Exchange stock ETFs into the scope of the Shenzhen-Hong Kong Stock Connect, as follows: The Shenzhen Stock Exchange ETF has an average daily asset size of RMB 1.5 billion in the past six months, and its constituent securities are the underlying stocks of Shenzhen and Shanghai Stock Connect. Mainly; the average daily asset size of ETFs on the Stock Exchange in the past six months has reached 1.7 billion Hong Kong dollars, and its constituent securities are mainly the underlying stocks of Hong Kong Stock Connect, which cannot be classified as synthetic ETFs, leveraged and inverse products. To be included in the underlying ETF, it must meet the requirements of listing for six months and the underlying index for one year. In principle, the underlying ETF will be adjusted semi-annually. The deadline for the first-time inclusion of SZSE ETFs and Hong Kong ETFs is April 29, 2022. The list of ETFs included in SZSE and SZSE for the first time and the effective date, Shenzhen Stock Exchange Securities Trading Service Company, Stock Exchange Securities Trading Services The company will notify you separately.
The second is to regulate the return journey of mainland investors to participate in Shenzhen Stock Connect trading. It is stipulated that Shenzhen Stock Connect investors do not include mainland investors, and the scope and definition standards of mainland investors are clarified. In order to give Hong Kong brokers and other stock exchange participants sufficient preparation time, after the relevant regulations come into effect on July 25, 2022, a one-year transition period will be set up for mainland investors who have opened the trading authority of Shenzhen Stock Connect.
In addition, in order to enable investors to fully understand the risks associated with trading ETFs under Southbound Trading, Shenzhen Stock Exchange and China Clearing have jointly revised the “Mandatory Terms of the Shenzhen Stock Exchange Southbound Trading Risk Disclosure Statement (Revision in 2022)”, requiring members to fully inform investment Risks related to investors, and do a good job in investor suitability management and related education services.
The “Mandatory Clauses of Risk Disclosure Statement” mainly increases the risk warning clauses of ETFs for Southbound Stock Connect. On the whole, the trading mechanism, daily quota control, investor suitability management, clearing and settlement, and risk control arrangements of Southbound ETFs are basically the same as the existing stock mechanisms of Shenzhen-Hong Kong Stock Connect, but Southbound ETFs are changing fund management. Investors should pay attention to the possible risks that may arise due to special institutional arrangements in respect of individuals, termination of listing, or the occurrence of liquidation business, etc., which are different from those in the mainland securities market.
The Shenzhen Stock Exchange said that in the next step, it will continue to study institutional arrangements such as the selection conditions of ETF targets, and further optimize and improve the Shenzhen-Hong Kong Stock Connect mechanism in light of business development.Return to Sohu, see more
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