Shenzhen-Hong Kong Stock Connect to be launched after mid November

The Shenzhen-Hong Kong Stock Connect hopes to launch on a Monday after mid November due to risk management issues, Charles Li, chief executive of Hong Kong Exchanges and Clearing Limited, said on Thursday during a media briefing.

According to Wang Hong, executive vice president of Shenzhen Stock Exchange, they will be working on technical preparations from October 17 to November 9. They will adopt comprehensive whole-market and whole-day system testing in securities firms and financial institutions. By the middle of November, the whole market’s technical system will be ready.

HKEx officially started the investor road show on the second stock connect globally this afternoon. The first stop was Hong Kong. Wang Hong mentioned that during the road shows, they will introduce a risk disclosure letter which reveals the risks on investing in medium and small sized listed companies included in the second stock connect and the different mechanisms of Hong Kong and Chinese mainland equity markets, such as the risk alarm mechanism of delisting.

As the second stock market will attract more overseas investors, Wang Hong said the Securities and Futures Commission of the two markets have launched regulations to protect the rights of overseas investors, including enhancing the obligations of listed companies, applying an internet voting mechanism, as long as overseas investors can have shareholder property rights.

Li added that in the future, they will consider including ETF in the stock connect.