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China, Hong Kong expand scope of stock connect


Securities regulators in both mainland China and Hong Kong have agreed to expand the scope of stocks eligible for inclusion on the city’s stock exchange with Shanghai and Shenzhen. The move would allow Chinese investors to be able to buy and sell shares of international companies and may encourage more firms to sell new shares in the city. According to Hong Kong Exchanges & Clearing, preparation for the new proposals will take approximately three months, and the official launch date will be announced in due course. Foreign firms will need to have a market capitalisation of at least HKD5bn (USD642m) to qualify. The planned expansion was highlighted by China Securities Regulatory Commission Vice Chairman Fang Xinghai in September. Trading is lukewarm in Hong Kong’s international listings, which include Prada, L’Occitane International, and Samsonite International.

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