deal!ETF is officially implemented in interconnection on July 4

Wen | Wu Xiaolu Xing Meng

On June 28, the China Securities Regulatory Commission and the Hong Kong Securities Regulatory Commission issued the "China Securities Supervision and Administration Commission Hong Kong Securities and Futures Affairs Supervision Committee Joint Announcement" (referred to as "Joint Announcement") and decided to approve the exchanges of the two places to officially meet the qualified trading type Open Fund (Exchange Sale Fund) (hereinafter referred to as ETF) is included in the interconnection mechanism of the Mainland and the Hong Kong stock market transaction (hereinafter referred to as interconnection). ETF transactions under the interconnection will begin on July 4, 2022. On the same day, the Shanghai and Shenzhen Exchange stated that the current preparations such as the business and technology of ETFs into the interconnection mechanism have been basically completed. Industry insiders said that ETF, an indexed fund product suitable for passive investment into interconnection, is conducive to enriching interconnected investment varieties, further facilitating domestic and foreign investors to participate in the capital markets of the two places, enhance A shares for medium- and long -term allocation funds abroad The attractiveness of the mainland's capital market is also conducive to further consolidating and enhancing the status of Hong Kong's international financial center. Relevant business rules have determined that the technical system has been prepared to be ready to be ready. The main content of the "Joint Announcement" is three main contents. First, since May 27 this year, the China Securities Regulatory Commission and the Hong Kong Securities Regulatory Commission issued a joint announcement. Shangtongli cooperates. At present, related business rules, operating plans, and supervision arrangements have been determined, and the technical system is ready. On June 24, the CSRC issued the "Announcement on the Integrated Arrangement of Transaction Open Fund Integrated Fund" to regulate the related activities of interconnection and interconnection. On the same day, the Shanghai and Shenzhen Exchange and China Settlement Released Implementation Rules. Second, the China Securities Regulatory Commission and the Hong Kong Securities Regulatory Commission have reached a consensus on cross -border supervision cooperation and investor education cooperation involved in ETF income from interconnection. Law enforcement cooperation, combat various cross -border violations of laws and regulations, deal with major or emergencies in a timely manner, maintain the normal operation of interconnection, and protect investors' legitimate rights and interests. Third, exchanges between the two places, securities trading service companies, and registration and settlement agencies shall fulfill the duties of interconnection and interconnection in accordance with the law, and organize the market for the market to carry out ETFs into interconnected related businesses in an orderly manner. Securities companies (or brokers) shall abide by relevant regulatory regulations and business rules, strengthen internal control, prevent and control risks, do a good job of investor education and services, and effectively safeguard the legitimate rights and interests of investors. Investors should fully understand the differences in market laws and regulations, business rules and practical operations of the two places, carefully evaluate and control risks, and rationally carry out interconnected investment related investment. The "Joint Announcement" proposes that all parties of the market should be prepared before starting to ensure that ETF is included in the connection and connection. After the "Joint Announcement" was released, the Shanghai Stock Exchange stated on the same day that the relevant business rules of the ETF incorporated interconnection mechanism had been officially released in the early stage, and it was clear to the market. The Shanghai Stock Exchange has organized market participants to further prepare for business startup, carry out multiple transaction system customs clearance tests with member agencies, and urge members to strengthen internal control and risk prevention. At present, the preparations such as the business and technology of ETFs into the interconnection mechanism have been basically completed. At the same time, the Shenzhen Stock Exchange stated that related business rules have been released to clarify matters such as ETF income and adjustment mechanisms, and transaction arrangements. At the same time, the Shenzhen Stock Exchange worked closely with relevant parties to organize market participants to prepare for various preparations, jointly conduct multiple technical system testing with member institutions, urge members to strengthen business risk prevention, and conscientiously do investor education services. At present, preparations for business, technology and markets are basically ready. At the same time, the Shanghai and Shenzhen Stock Exchange and the Hong Kong Stock Exchange announced on June 28 the first batch of ETF lists for the Shanghai -Shenzhen -Hong Kong Stock Exchange, which will be officially included in the Shanghai -Shenzhen -Hong Kong Standard bids on July 4. Among them, the Shanghai Stock Connect ETF53, including Shanghai Stock Exchange 50ETF, Financial ETF, Bonus ETF, etc.; A total of 30 ETFs in Shenzhen Stock Connect, covering core broad -foundation products such as GEM ETF, CSI 300ETF, as well as biotechnology ETF, chip ETF, carbon carbon Normal and ETFs and other representative industry -themed products are mainly concentrated in the fields of advanced manufacturing, digital economy and green low -carbon. There are 4 Hong Kong Stock Connect ETFs, including ETFs such as Yingfu Fund. Further expansion of interconnected transactions to effectively strengthen cross -border supervision and cooperation in recent years, the CSRC orderly promotes the interconnection of the Mainland and Hong Kong financial markets and financial infrastructure, and launched Shanghai -Hong Kong on November 17, 2014 and December 5, 2016. The mechanism of general and Shenzhen -Hong Kong -Hong Kong -pass has created a new model of cross -border investment with convenient operation and controlling risks. Since the opening of the Shanghai -Shenzhen -Hong Kong Stock Connect, the overall operation is smooth and orderly. If different voting rights architecture companies, listing biotechnology companies, and science and technology board companies have been included in the bidding, the mainland capital market is open to the public, and the common development of markets in the two places. In addition, the China Securities Regulatory Commission has made an institutional improvement in optimizing the suspension mechanism, reforming the end of the trading mechanism, and improving the management method of the upper limit of the shareholding, and has achieved positive results.

As of the end of May 2022, the total net inflow of Shanghai and Shenzhen Stock Connect funds was approximately 1.633.4 billion yuan, and the total net inflow of Hong Kong Stock Connect funds was about 209.8 billion yuan.The CSRC stated that the next step will continue to optimize and improve the interconnection and interoperability mechanism, further expand the targets of interconnected transactions, effectively strengthen cross -border regulatory cooperation, support Hong Kong's international financial center position, and promote mutual benefit and win -win and common development of markets in the two places.Recommended reading

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