It is related to the information disclosure mechanism of Stock Connect, and the three major exchanges have announced the latest announcement!

The latest announcement of the three major exchanges!

In order to further optimize the Stock Connect mechanism and ensure the consistency of information disclosure in the overall market, under the guidance of the Securities Regulatory Commissions of the two places, the Shanghai Stock Exchange (SSE), the Shenzhen Stock Exchange (SZSE) and the Hong Kong Exchanges and Clearing Limited (HKEX) will adjust the information disclosure mechanism for Stock Connect transactions based on the home principle.

Adjustments to the Stock Connect trading information disclosure mechanism

As an important part of the Stock Connect arrangement, the trading information disclosure mechanism needs to be continuously improved in practice. The Stock Connect trading information disclosure mechanism was originally designed to effectively reveal and remind investors of the use of trading quotas, but the frequency and content of disclosure are different from the general practice of information disclosure in the A-share market, and are also different from the common practice in mainstream international markets. From the perspective of international practice, mainstream markets such as Europe and the United States do not disclose the transaction information of a specific category of investors in real time during the intraday, nor do they make differentiated arrangements for domestic investors and international investors in terms of transaction information disclosure mechanism.

In order to maintain the consistency of information disclosure in the overall market, improve the adaptability of information disclosure to market development, and ensure the fairness of investors' access to information, under the guidance of the CSRCs of the two places, the three exchanges have adjusted the information disclosure mechanism of Stock Connect in accordance with the principle of home field, that is, the relevant trading activities should comply with the regulatory requirements and business rules of the place where the transaction takes place, and comprehensively consider the structural characteristics of investors and information disclosure practices in the two markets.

The main arrangements after the adjustment are as follows:

For Stock Connect, when the quota balance is greater than or equal to 30% on the same day, "sufficient quota" will be displayed, and when it is less than 30%, the quota balance will be announced in real time. After the market closes each day, the total trading volume and total number of transactions of Northbound Stock Connect, the total trading volume of ETFs, the list of the top 10 actively traded securities (including ETFs) and their total trading volume of the day will be disclosed, and the summary of the aforementioned data will be announced on a monthly and annual basis. On the 5th trading day of each quarter, the aggregate holdings of individual securities and SSE investors and the holdings of each HKSCC Participant at the end of the previous quarter will be announced.

For Southbound Stock Connect, when the quota balance is greater than or equal to 30% on the same day, "sufficient quota" will be displayed, and when it is less than 30%, the quota balance will be announced in real time. During the trading period, the transaction amount and total transaction amount of buying and selling will be announced. After the market closes on a daily basis, the daily market closes the day's buy transaction amount and number of transactions, the total amount of selling transactions, the total number of ETFs, the list of the top 10 actively traded securities (including ETFs) and their buy transaction amounts, sell transaction amounts and total trading amounts, and publishes the summary of the aforesaid post-closing data on a monthly and annual basis. Disclose the total number of shares held by Hong Kong Stock Connect investors for a single security after the market closes each day.

The Shanghai-Shenzhen-Hong Kong Stock Exchange divides the above trading information disclosure arrangements and discloses them on their respective official websites. In order to reserve sufficient time for the market to debug and transition, and ensure that all market participants are fully prepared, the adjustment will be carried out in two stages: in the first stage, the Hong Kong Stock Exchange will complete the adjustment of the real-time trading information in the Shanghai and Shenzhen Stock Connect, which is expected to be implemented in one month, and in the second stage, the Shanghai and Shenzhen Stock Exchange will simultaneously complete the disclosure adjustment of other trading information, which is expected to be implemented three months after the completion of the first stage.

Stock Connect stocks account for more than 90% of the market value of the A-share market

Since the launch of Stock Connect nearly 10 years ago, the Stock Exchanges, under the guidance of the Securities Regulatory Commissions of the two places, have worked together to continuously improve the rules of the Stock Connect system, promote the optimization of the Stock Connect mechanism in a coordinated manner, remove the aggregate quota limit, expand the daily quota, expand the scope of underlying products and securities, introduce the Northbound Investor Identification Code and Southbound Investor Identification Number system, and optimize the trading calendar, so as to promote the long-term, stable and healthy development of the capital markets of the two places.

As of the end of March 2024, Stock Connect securities accounted for more than 90% of the market value of the A-share market, and Hong Kong Stock Connect accounted for more than 80% of the market capitalization of the Main Board of the Stock Exchange.

The Central Financial Work Conference proposed that it is necessary to coordinate opening up and security, and steadily expand the institutional opening up of the financial sector. In the next step, the three exchanges will continue to work closely together to promote the inclusion of more underlying products and trading methods in the Stock Connect, continue to optimize the interconnection mechanism, coordinate openness and security, steadily expand the high-level institutional opening of the capital market, and better serve China's modernization with the high-quality development of the capital market.

Editor-in-charge: Zhu Yumeng

Proofreading: Ran Yanqing

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