HK-Shanghai Stock Connect To Launch 'As Soon As Possible'
by Mary Swire, Lowtax.net, Hong Kong
10 November, 2014
After a visit to Beijing on November 4-5, Hong Kong's Financial Secretary, John Tsang, concluded that Chinese Central Government officials remain positive that Hong Kong-Shanghai Stock Connect (HKSSC) will launch as soon as it is possible.
Tsang said that the launch of HKSCC is well prepared, and that Hong Kong's Chief Executive CY Leung will garner further support for it from Mainland officials during the upcoming Asia-Pacific Economic Cooperation summit, also to be held in Beijing.
Tsang's meeting with China Securities Regulatory Commission Chairman Xiao Gang was of particular importance for the starting of the HKSCC.
The CSRC will be the Mainland regulator for the stock exchange link that will, for the first time, allow eligible Mainland Chinese investors to trade stocks listed on The Stock Exchange of Hong Kong Limited (SEHK) directly through the Shanghai Stock Exchange (SSE). It will also enable Hong Kong and overseas investors to trade stocks listed on the SSE directly through the SEHK.
In addition, Tsang met China Insurance Regulatory Commission President Xiang Junbo, with both confirming that they are committed to encouraging cross-boundary collaboration in RMB reinsurance. In meetings with China Banking Regulatory Commission Chairman Shang Fulin, both expressed the wish to further promote offshore RMB business in Hong Kong, consolidating the city's position as an international financial center.
Tsang relayed the Hong Kong finance sector's hope to remove the daily RMB conversion limit and to expand the RMB Qualified Foreign Institutional Investor quota.
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