The Shanghai-Hong Kong Stock Connect will be implemented in a progressive and risk-controllable manner.
Secretary for Financial Services & the Treasury Prof KC Chan told legislators today that as a pilot programme, Shanghai-Hong Kong Stock Connect is a major attempt to open up the Mainland's capital markets, incorporating restrictions on eligible shares, eligible investors and quotas in the initial phase.
He said these restrictions may be adjusted in light of operation. For example, derivatives are outside the current scope of the programme. But both stock exchange operators in Hong Kong and Shanghai will strengthen co-operation in the development of cross-boundary derivative products based on investor demands after the launch.
The Financial Services & the Treasury Bureau have been promoting financial co-operation between Hong Kong and the Mainland under CEPA and other platforms, seeking to provide the financial services sector with greater access to the Mainland market, he added.
