Several Provisions on the Interconnection Mechanism for Mainland and Hong Kong Stock Markets
Several Provisions on the Interconnection Mechanism for Mainland and Hong Kong Stock Markets
Several Provisions on the Interconnection Mechanism for Mainland and Hong Kong Stock Markets
Order of the China Securities Regulatory Commission No.128
September 30, 2016
The Several Provisions on the Interconnection Mechanism for Mainland and Hong Kong Stock Markets, adopted at the 11th executive meeting of the chairman of the China Securities Regulatory Commission on September 29, 2016, are hereby promulgated with immediate effect.
Chairman of the China Securities Regulatory Commission: Liu Shiyu
Several Provisions on the Interconnection Mechanism for Mainland and Hong Kong Stock Markets
Article 1 In order to standardize the activities related to the Interconnection Mechanism for Mainland and Hong Kong Stock Markets, protect the legitimate rights and interests of investors and maintain the trading order of the securities market, Several Provisions on the Interconnection Mechanism for Mainland and Hong Kong Stock Markets (these "Provisions") are hereby formulated in accordance with the Securities Law and other relevant laws and administrative regulations.
Article 2 For the purpose of these Provisions, the Interconnection Mechanism for Mainland and Hong Kong Stock Markets refers to a mechanism under which the Shanghai Stock Exchange and the Shenzhen Stock Exchange respectively establish technical connections with Stock Exchange of Hong Kong Limited ("SEHK") to make mainland and Hong Kong investors trade stocks listed on the other stock exchanges within the specified scope through local securities companies or brokers. The Interconnection Mechanism for Mainland and Hong Kong Stock Markets comprises the Shanghai-Hong Kong Stock Connect and the Shenzhen-Hong Kong Stock Connect.
The Shanghai-Hong Kong Stock Connect comprises the Shanghai Stock Connect and the Hong Kong Stock Connect under the Shanghai-Hong Kong Stock Connect. The Shanghai Stock Connect refers to investors, through their appointed Hong Kong brokers and a securities trading service company established by SEHK in Shanghai, trading eligible shares under the Shanghai-Hong Kong Stock Connect listed on the Shanghai Stock Exchange by routing orders to the Shanghai Stock Exchange. The Hong Kong Stock Connect under the Shanghai-Hong Kong Stock Connect refers to investors, through their appointed Mainland securities firms and a securities trading service company established by the Shanghai Stock Exchange in Hong Kong, trading eligible shares under the Shanghai-Hong Kong Stock Connect listed on SEHK by routing orders to SEHK.
The Shenzhen-Hong Kong Stock Connect comprises the Shenzhen Stock Connect and the Hong Kong Stock Connect under the Shenzhen-Hong Kong Stock Connect. The Shenzhen Stock Connect refers to investors, through their appointed Mainland securities firms and a securities trading service company to be established by SEHK in Shenzhen, trading eligible shares under the Shenzhen-Hong Kong Stock Connect listed on the Shenzhen Stock Exchange by routing orders to the Shenzhen Stock Exchange. The Hong Kong Stock Connect under the Shenzhen-Hong Kong Stock Connect refers to investors, through their appointed Mainland securities firms and a securities trading service company established by the Shenzhen Stock Exchange in Hong Kong, trading eligible shares under the Shenzhen-Hong Kong Stock Connect listed on SEHK by routing orders to SEHK.
The Hong Kong Stock Connect under the Shanghai-Hong Kong Stock Connect and the Shenzhen-Hong Kong Stock Connect are collectively referred to as the Hong Kong Stock Connect.
Article 3 The Interconnection Mechanism for Mainland and Hong Kong Stock Markets are subject to the laws and regulations on the trading and settlement prevailing in the two markets.
Trading and settlement activities are subject to the regulatory provisions and business rules of the place where such trading and settlement occurs; listed companies shall abide by the regulatory provisions and business rules of the place where they are listed; securities companies or brokers shall abide by the regulatory provisions and business rules of the places where they are located; and investors shall abide by the regulatory provisions for eligibility of investors and business rules of the places where the securities companies or brokers entrusted by investors are located, unless otherwise specified herein.
Article 4 The China Securities Regulatory Commission (the "CSRC") shall conduct supervision and administration of the business of the Interconnection Mechanism for Mainland and Hong Kong Stock Markets and, in concert with the Securities and Futures Commission and other relevant national or regional securities regulatory authorities, protect the legitimate rights and interests of cross-border investments of investors according to regulatory and cooperative arrangements and based on the principles of fairness, justice and reciprocity.
Article 5 The Shanghai Stock Exchange, the Shenzhen Stock Exchange and SEHK shall perform the following responsibilities when carrying out any business related to the Interconnection Mechanism for Mainland and Hong Kong Stock Markets:
1.
......
Order of the China Securities Regulatory Commission No.128
September 30, 2016
The Several Provisions on the Interconnection Mechanism for Mainland and Hong Kong Stock Markets, adopted at the 11th executive meeting of the chairman of the China Securities Regulatory Commission on September 29, 2016, are hereby promulgated with immediate effect.
Chairman of the China Securities Regulatory Commission: Liu Shiyu
Several Provisions on the Interconnection Mechanism for Mainland and Hong Kong Stock Markets
Article 1 In order to standardize the activities related to the Interconnection Mechanism for Mainland and Hong Kong Stock Markets, protect the legitimate rights and interests of investors and maintain the trading order of the securities market, Several Provisions on the Interconnection Mechanism for Mainland and Hong Kong Stock Markets (these "Provisions") are hereby formulated in accordance with the Securities Law and other relevant laws and administrative regulations.
Article 2 For the purpose of these Provisions, the Interconnection Mechanism for Mainland and Hong Kong Stock Markets refers to a mechanism under which the Shanghai Stock Exchange and the Shenzhen Stock Exchange respectively establish technical connections with Stock Exchange of Hong Kong Limited ("SEHK") to make mainland and Hong Kong investors trade stocks listed on the other stock exchanges within the specified scope through local securities companies or brokers. The Interconnection Mechanism for Mainland and Hong Kong Stock Markets comprises the Shanghai-Hong Kong Stock Connect and the Shenzhen-Hong Kong Stock Connect.
The Shanghai-Hong Kong Stock Connect comprises the Shanghai Stock Connect and the Hong Kong Stock Connect under the Shanghai-Hong Kong Stock Connect. The Shanghai Stock Connect refers to investors, through their appointed Hong Kong brokers and a securities trading service company established by SEHK in Shanghai, trading eligible shares under the Shanghai-Hong Kong Stock Connect listed on the Shanghai Stock Exchange by routing orders to the Shanghai Stock Exchange. The Hong Kong Stock Connect under the Shanghai-Hong Kong Stock Connect refers to investors, through their appointed Mainland securities firms and a securities trading service company established by the Shanghai Stock Exchange in Hong Kong, trading eligible shares under the Shanghai-Hong Kong Stock Connect listed on SEHK by routing orders to SEHK.
The Shenzhen-Hong Kong Stock Connect comprises the Shenzhen Stock Connect and the Hong Kong Stock Connect under the Shenzhen-Hong Kong Stock Connect. The Shenzhen Stock Connect refers to investors, through their appointed Mainland securities firms and a securities trading service company to be established by SEHK in Shenzhen, trading eligible shares under the Shenzhen-Hong Kong Stock Connect listed on the Shenzhen Stock Exchange by routing orders to the Shenzhen Stock Exchange. The Hong Kong Stock Connect under the Shenzhen-Hong Kong Stock Connect refers to investors, through their appointed Mainland securities firms and a securities trading service company established by the Shenzhen Stock Exchange in Hong Kong, trading eligible shares under the Shenzhen-Hong Kong Stock Connect listed on SEHK by routing orders to SEHK.
The Hong Kong Stock Connect under the Shanghai-Hong Kong Stock Connect and the Shenzhen-Hong Kong Stock Connect are collectively referred to as the Hong Kong Stock Connect.
Article 3 The Interconnection Mechanism for Mainland and Hong Kong Stock Markets are subject to the laws and regulations on the trading and settlement prevailing in the two markets.
Trading and settlement activities are subject to the regulatory provisions and business rules of the place where such trading and settlement occurs; listed companies shall abide by the regulatory provisions and business rules of the place where they are listed; securities companies or brokers shall abide by the regulatory provisions and business rules of the places where they are located; and investors shall abide by the regulatory provisions for eligibility of investors and business rules of the places where the securities companies or brokers entrusted by investors are located, unless otherwise specified herein.
Article 4 The China Securities Regulatory Commission (the "CSRC") shall conduct supervision and administration of the business of the Interconnection Mechanism for Mainland and Hong Kong Stock Markets and, in concert with the Securities and Futures Commission and other relevant national or regional securities regulatory authorities, protect the legitimate rights and interests of cross-border investments of investors according to regulatory and cooperative arrangements and based on the principles of fairness, justice and reciprocity.
Article 5 The Shanghai Stock Exchange, the Shenzhen Stock Exchange and SEHK shall perform the following responsibilities when carrying out any business related to the Interconnection Mechanism for Mainland and Hong Kong Stock Markets:
1.
......