China unveiled new measures on Friday to enhance the connectivity between mainland and Hong Kong capital markets as the country’s latest step to expand its financial opening-up and reinforce Hong Kong’s position as an international financial center.
The China Securities Regulatory Commission said it will, in collaboration with its Hong Kong counterpart, expand the scope of eligible stock exchange-traded funds under the stock connect programs, easing requirements regarding the size of assets under management and index weighting.
Other measures to optimize the stock connect programs between mainland and Hong Kong exchanges include incorporating real estate investment trusts, or REITs, into the programs and making the renminbi trading counter available in southbound trading.
The CSRC will also further liberalize the sales of Hong Kong-founded securities funds in the Chinese mainland and step up efforts to support leading mainland-based enterprises in getting listed in Hong Kong.
Also on Friday, the CSRC released measures to further facilitate the financing of technology-oriented enterprises, including their overseas listings, and reduce the commission rate charged by publicly-offered securities funds.