China Securities Regulatory Commission and Hong Kong Securities Regulatory Commission: ETF transactions under interconnection began on July 4th

China Economic Net, Beijing, June 28. According to the website of the China Securities Regulatory Commission, the China Securities Regulatory Commission, the Hong Kong Securities and Futures Affairs Supervision Committee issued a joint announcement stating that ETF transactions under the interconnection began on July 4. The full text of the announcement is as follows:

In order to promote the common development of the capital market in the Mainland and Hong Kong, the China Securities Regulatory Commission (hereinafter referred to as the China Securities Regulatory Commission), the Hong Kong Securities and Futures Affairs Supervision Committee (hereinafter referred to as the Hong Kong Securities Regulatory Commission) decided to approve the exchanges of the two places 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. The announcement is as follows:

1. Since the China Securities Regulatory Commission and the Hong Kong Securities Regulatory Commission issued a joint announcement on May 27 this year, regulators of the two places have cooperated with ETF's preparations for the integration of ETF. At present, related business rules, operating plans and regulatory arrangements have been determined, and the technical system is ready.

2. 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 incorporations. 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 the legitimate rights and interests of investors.

3. Exchange, 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 related investment.

The announcement requires that all parties of the market should pay close attention to the preparations before the startup to ensure that ETF is included in the connection of interconnection.

Special announcement.

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