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Stock connect between mainland, HK facilitates increasing two-way flow of capital in past decade

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      China

      China

      Stock connect between mainland, HK facilitates increasing two-way flow of capital in past decade

      2024-11-19 16:32 Last Updated At:17:27

      The cross-boundary transactions through the capital market connectivity mechanism established between the Chinese mainland and the Hong Kong Special Administrative Region have reached roughly 177 trillion yuan (about 24.46 trillion U.S. dollars) over the past decade, according to the Hong Kong Exchanges and Clearing Limited (HKEX).

      Since the launch of Shanghai-Hong Kong Stock Connect on Nov 17, 2014, and Shenzhen-Hong Kong Stock Connect on Dec 5, 2016, total turnover of Stock Connect has continued to hit new records, with strong participation from both Chinese mainland and international investors, facilitating the two-way flow of domestic and foreign capital and having a profound impact on the capital markets of the two regions.

      The average daily turnover of northbound and southbound trading under the Stock Connect reached 136.3 billion yuan (about 18.83 billion U.S. dollars) and 43.9 billion Hong Kong dollars (about 5.64 billion U.S. dollars) respectively in the first 10 months of 2024, accounting for 7.3 percent and 17.2 percent of the total turnover of the mainland and Hong Kong markets, said the HKEX.

      As of September 2024, the market capitalization of securities portfolios held in Hong Kong by mainland investors through the Stock Connect was over 3.3 trillion Hong Kong dollars (about 424 billion U.S. dollars), more than 200 times that at the end of 2014, said the HKEX.

      "It's fair to say that the connectivity has opened a fast lane for international investors to invest in the mainland. What flows back and forth is not only products and funds, but also investors' recognition, understanding and attention to the markets of the two places," said Paul Chan Mo-po, Financial Secretary of Hong Kong.

      Since the operation of Shanghai-Hong Kong Stock Connect, the cumulative turnover of foreign capital through the northbound trading has reached 70 trillion yuan (about 9.67 trillion U.S. dollars), and its average daily turnover has risen dramatically from 4.7 billion yuan (about 650 million U.S. dollars) in the first month of operation in 2014 to 128.3 billion yuan (about 17.73 billion U.S. dollars) now, according to the Shanghai Security Exchange.

      So far, international investors from more than 130 countries or regions across the globe have participated in the northbound trading of Shenzhen-Hong Kong Stock Connect, with the average daily turnover marking 72 billion yuan (about 9.95 billion U.S. dollars) this year and seeing an average annual growth of 76 percent, according to the Shenzhen Security Exchange.

      Moreover, southbound trading under Shenzhen Connect has seen its average daily turnover reaching 19.3 billion Hong Kong dollars (about 2.48 billion U.S. dollars) since the beginning of 2024, an average annual growth of 89 percent year on year.

      "Currently, Shanghai-Hong Kong Stock Connect and Shenzhen-Hong Kong Stock Connect have become main channels for international investors to trade and hold mainland's A-shares, with nearly 77 percent of foreign investors holding mainland stocks through these channels," said Bonnie Y Chan, the Chief Executive Officer of the HKEX.

      As of September, more than 260 Hong Kong brokers had participated in the Shanghai and Shenzhen stock connect business, and more than 100 mainland securities companies had launched their HK Stock Connect businesses, according to the HKEX.

      Stock connect between mainland, HK facilitates increasing two-way flow of capital in past decade

      Stock connect between mainland, HK facilitates increasing two-way flow of capital in past decade

      Next Article

      Top legislator meets chairman of Mongolia's State Great Hural

      2025-02-25 21:16 Last Updated At:21:37

      China's top legislator Zhao Leji held talks with Dashzegve Amarbayasgalan, chairman of Mongolia's State Great Hural (Parliament), in Beijing on Tuesday.

      Zhao, chairman of the National People's Congress (NPC) Standing Committee, said that the bilateral relations between China and Mongolia have maintained a sound and steady development momentum under the strategic guidance of the two heads of state, with fruitful results in mutually beneficial cooperation.

      China is willing to work with Mongolia to implement the consensus reached between leaders of the two countries and push for the sustained and steady growth of the China-Mongolia comprehensive strategic partnership, said Zhao.

      Noting that developing long-term and steady good-neighborly relations is a strategic choice made by China and Mongolia, Zhao said that both sides should respect each other's independence, sovereignty and territorial integrity, as well as each other's core interests and major concerns.

      China appreciates Mongolia's firm adherence to the one-China principle and its support to China on issues related to Taiwan, Xizang, Xinjiang, and Hong Kong, said Zhao.

      Zhao also said that the two sides should pursue mutual benefits, enhance cooperation in sectors of minerals, energy, and infrastructure, and foster new highlights of cooperation in digital economy and other areas.

      The two countries should also learn from the history, jointly defend the international system centered on the United Nations and the outcomes of World War II, and safeguard the common interests of developing countries, said Zhao.

      Stressing that the NPC maintains a long-term good relations with Mongolia's State Great Hural, Zhao said that China is ready to further strengthen exchanges and cooperation with Mongolia's legislature at all levels, deepen experience sharing on governance, and learn from each other in reform and opening up, improving people's livelihood and the business environment.

      Amarbayasgalan said that Mongolia firmly follows the one-China principle, and is ready to enhance pragmatic cooperation with all sectors.

      Mongolia's State Great Hural is willing to strengthen friendly exchanges with the NPC, give a play to mechanisms for regular exchanges between legislature bodies of the two countries, and contribute to the China-Mongolia comprehensive strategic partnership, said Amarbayasgalan.

      Top legislator meets chairman of Mongolia's State Great Hural

      Top legislator meets chairman of Mongolia's State Great Hural

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