BEIJING — China will launch Shenzhen-Hong Kong Stock Connect program on a trial basis “at an appropriate time,” according to a government work report delivered by Premier Li Keqiang at the annual parliamentary session on March 5.
The move, part of the world’s second largest economy’s effort to deepen financial sector reform, came after the country launched the similar scheme of Shanghai-Hong Kong Stock Connect in November.
Under the scheme, Hong Kong-based investors are allowed to trade Shanghai-listed stocks under a daily quota of 13 billion yuan ($2.1 billion) and total ceiling of 300 billion yuan. Shanghai traders may invest in Hong Kong-listed stocks under a daily quota of 10.5 billion yuan and a total ceiling of 250 billion yuan.
Officials have hailed the Shanghai-Hong Kong Stock Connect program, saying it is conducive to consolidating the role of Hong Kong as an international financial center, and speeding up the building of Shanghai as an international financial center to raise the competitiveness of China’s overall capital market.
Hong Kong’s financial secretary said last month that the Shanghai-Hong Kong Stock Connect project had been operating smoothly.