China Securities Regulatory Commission announces new measures to enhance Mainland-Hong Kong market access

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The China Securities Regulatory Commission

19th April 2024 – (Beijing) The China Securities Regulatory Commission (CSRC) unveiled new measures today, aimed at broadening mutual market access. This initiative will include the expansion of eligible equity exchange-traded funds (ETFs) under the Stock Connect programme, integration of real estate investment trusts (REITs), and the introduction of Renminbi (RMB) stock trading counter for Southbound trading.

The announcement was warmly received by the Hong Kong Special Administrative Region (HKSAR) Government, praising the unwavering support from the Central People’s Government. Mr. John Lee, the Chief Executive of Hong Kong, expressed his gratitude, noting that these measures are pivotal for enhancing Hong Kong’s financial market, offering more diverse investment opportunities and reinforcing its stature as an offshore RMB business hub.

“The expanded mutual access is a testament to the motherland’s support for Hong Kong’s role as a global financial centre,” stated Mr. Lee. He reiterated the commitment of the HKSAR Government to leverage this initiative to boost Hong Kong’s position as a financial powerhouse.

These measures are also set to enrich the array of investment products available, making the markets more attractive to both Mainland and international investors. Particularly, the inclusion of leading Mainland enterprises in the Hong Kong stock market is expected to invigorate the initial public offering (IPO) landscape, promising substantial long-term growth and returns.

Financial Secretary, Mr. Paul Chan, highlighted the strategic importance of these initiatives in connecting Mainland and international capital markets. “By expanding the mutual market access, we not only enrich asset allocation choices but also further the gradual and prudent internationalization of the RMB,” said Mr. Chan.

He also detailed plans to support the implementation of these measures, including waiving stamp duties on REIT transfers and enhancing regulatory regimes, to ensure that Hong Kong maximizes these new opportunities.