China approves new Stock Connect 16 August 2016Beijing Reporter: Mark Dugdale
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China has approved the Shenzhen-Hong Kong Stock Connect programme, paving the way for a better-regulated stock market.
Premier Li Keqiang made the announcement during a State Council executive meeting today (16 August).
“The preparation for the launch of Shenzhen-Hong Kong Stock Connect has been basically completed, and the State Council has approved its implementation plan,” he said.
Greater China chief executive for HSBC, Helen Wong, welcomed the decision, saying: “China’s decision to launch Shenzhen-Hong Kong Stock Connect demonstrates the country’s continuing commitment to liberalising its financial sector and opening up its capital markets to global investors.”
“This link should provide investors around the world with a convenient way to access China's new generation of private sector companies listed in Shenzhen, including an array of innovative internet and technology players based in the Pearl River Delta.”
China’s approval of the link between Shenzhen and Hong Kong follows the success of the Shanghai-Hong Kong Stock Connect.
Since its pilot at the end of 2014, the Shanghai-Hong Kong Stock Connect has withstood its market test, with steady and orderly overall performance, according to Chinese state media.
The programme has achieved its expected targets, earning positive feedback from all related parties, Premier Li added.
It’s unclear when the Shenzhen-Hong Kong Stock Connect programme will launch, with Premier Li previously saying it would do so at an “appropriate time”.
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