SFC welcomes CSRC’s announcement of five measures on capital market cooperation with Hong Kong

The Securities and Futures Commission (SFC) has welcomed the five measures announced by the China Securities Regulatory Commission (CSRC) to strengthen the Stock Connect and support Hong Kong’s position as an international financial center. The measures include expanding the range of eligible exchange-traded funds (ETFs) and incorporating real estate investment trusts (REITs) into the Stock Connect. They also involve supporting the inclusion of RMB-denominated stocks, enhancing the mutual recognition of funds scheme, and promoting the listing of leading Mainland companies in Hong Kong. The SFC is pleased with these initiatives, which have been the result of discussions between the CSRC and SFC, and active collaboration between the Mainland and Hong Kong stock exchanges. The SFC’s Chief Executive Officer, Ms Julia Leung, expressed her delight at the progress made through the joint efforts of the two securities regulators. She believes that the expansion of the Stock Connect and improvements in the mutual recognition of funds will provide investors with a wider range of investment options and enable Hong Kong to leverage its unique advantages as the country’s capital market opens up. Ms Leung also expressed gratitude for the CSRC’s support in facilitating fundraising channels for Mainland companies to list in Hong Kong, which will enhance the attractiveness of Hong Kong’s IPO market and increase liquidity in the secondary market. The SFC will continue to collaborate with the CSRC to guide the industry, stock exchanges, and clearing houses in implementing these measures, with further details to be announced in the future. Resources: https://apps.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/doc?refNo=24PR72