Hong Kong Mainland Capital Market Interconnection Mechanism Upgrade ETF Fund to start a transaction today

The Hong Kong Stock Exchange of Stock Exchange. (AFP)

Reporter Ni Hao

On the occasion of the 25th anniversary of the return of the motherland in Hong Kong, the transaction -type open index fund (ETF) transaction under the interconnection of the Mainland and the Hong Kong capital market was officially launched on July 4th. The qualified investors of the two places can buy 87 ETFs of the two places like buying and selling stocks. It includes 83 A -share ETFs and 4 Hong Kong stock ETFs. This is the iconic result of the upgrading of the Internet and interoperability mechanism of the two places. It is also another important breakthrough in the Mainland to continue to deepen the capital market reform and promote high levels of opening up.

87 ETF startup transaction

According to the news released by the Hong Kong Exchange, on December 24, 2021, the Hong Kong Stock Exchange, Shanghai Stock Exchange and Shenzhen Stock Exchange announced that they had reached a consensus on the overall plan of the interconnection target of ETF. On May 27, 2022, the Securities Regulatory Commission of the two places jointly issued an announcement that the principle agreed to enter the interconnection. On June 28, the two places decided to include 87 ETFs that meet the conditions into the interconnection mechanism and clearly began to be traded on July 4. This means that qualified investors in the two places can buy 87 ETF fund products traded by local securities companies or brokers to buy and sell markets. The Shanghai -Shenzhen Stock Connect can buy 83 A -share ETFs.

Among them, 83 A -share ETF covers Shanghai Stock Exchange 50ETF, Shanghai Stock Exchange 180ETF, GEM ETF, CSI 300ETF, Biomedical, Semiconductor, New Energy, Biotechnology, Chip, Carbon neutral ETF and other fields. Four Hong Kong stock ETFs are profitable funds, Hang Seng Chinese Enterprises, Southern Hang Seng Technology, and Anshuo Hang Seng Technology. These fund heavy stocks include Tencent, Alibaba, Meituan, Kuaishou, SMIC, etc.

The Wall Street Journal of the United States believes that ETFs are included in interconnection, which can not only expand investors to contact different asset categories, but also show that the Chinese government is taking action to further strengthen the financial connection between the Mainland and one of the most active exports in Asia.

Interconnected upgrade again

The CEO of the Hong Kong Stock Exchange said that the integration of ETF is another iconic result of the upgrading of the interconnection mechanism. ETF includes the interconnection targets to meet the requirements of the market's higher requirements for interconnection, create a win -win situation for the Mainland and the Hong Kong market, and promote the sustainable development of markets in the two places.

In November 2014, the Shanghai -Hong Kong Stock Connect was first opened under the interconnection mechanism. In December 2016, Shenzhen -Hong Kong Stock Connect was officially launched. In 2017 and 2019, bonds of the two places were opened in both directions. Since then, the Shanghai -Shenzhen -Hong Kong -connected mechanism has continued to improve and optimize, and the scope of transactions has been expanding.

At present, the Hong Kong Stock Connect has become the main channel for direct investment in the Hong Kong market in Mainland investors, while Shanghai Stock Connect and Shenzhen Stock Connect have become the main channel for international investors to invest in the mainland A -share market. At present, the total size of overseas investors holds more than 3 trillion yuan, more than 70 % of which are held through the Shanghai -Shenzhen -Hong Kong Connect.

Huaxia Fund believes that under the arrangement of the ETF interconnection mechanism, mainland investors can invest in the mainstream ETF products in the Hong Kong market, and can conduct cross -border asset allocation and share the business results of high -quality listed companies in the Hong Kong Stock Exchange; global investors can use Hong Kong to directly invest in the Mainland in the Mainland The market's ETF has expanded the scope of investing in the A -share market and effectively realizing two -way cross -border investment.

Expert: attract new funds for A shares

Qianhai Open Source Chief Economist Yang Delong said in an interview with the Global Times reporter on July 3 that ETF was incorporated into interconnection, which is conducive to opening up the mainland market and the Hong Kong market, providing convenience for investors' investment, and attracting the markets of the two places. " Live water ". He believes that the ETFs of the Shanghai and Shenzhen cities are included in the interconnection and interconnection, which greatly facilitates Hong Kong and overseas investors, which will bring relatively large increase in incremental funds to the A -share market.

Dong Dengxin, director of the Institute of Finance and Securities of Wuhan University of Science and Technology, said in an interview with the Global Times reporter that the expansion of the scale of interconnection will open a channel for overseas institutions and international capital to enter the Chinese market. He believes that the content of interconnection and interoperability is more abundant, and the scale of funds will continue to increase, which will effectively promote China to become a new financial center that attracts international capital, and create better conditions for the return of China Stocks.

"Wall Street Journal" quoted analysts opinions that the connection between Hong Kong and Mainland China's stock market further deepened, incorporated the qualified ETF into the interconnection, or improved the liquidity of the market, and allowed investors to choose theme or industry ETF to involve involved China's new energy vehicles, semiconductor and other industries. ▲

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