The Hong Kong Monetary Authority (HKMA) welcomes today’s announcement of the launch of Shanghai-Hong Kong Stock Connect on 17 November 2014.
Mr. Norman Chan, Chief Executive of the HKMA, said, “I am very pleased to see the Shanghai-Hong Kong Stock Connect coming into operation next week, following intensive discussions and preparations by the stock exchanges and authorities in the Mainland and Hong Kong. This marks an important milestone in the liberalisation of the Mainland’s capital account, allowing overseas investors to invest in the Mainland A-share market through Hong Kong, and Mainland investors to trade Hong Kong shares through Shanghai. The linking of the Hong Kong and Shanghai stock markets will also propel the development of offshore renminbi (RMB) business in Hong Kong to new heights.”
From 10 November, the HKMA is offering intraday RMB funds of up to RMB10 billion to authorized institutions participating in RMB business in Hong Kong. Earlier, the HKMA has designated seven banks as Primary Liquidity Providers for the offshore RMB market in Hong Kong and is providing a dedicated repo facility to each of them. With the commencement of Shanghai-Hong Kong Stock Connect, these measures will assist banks in managing their RMB liquidity.
Hong Kong Monetary Authority
10 November 2014