For the first time, the pilot program will allow eligible Mainland investors to trade stocks listed on the Stock Exchange of Hong Kong (SEHK) directly through the Shanghai Stock Exchange (SSE). At the same time, it will also allow Hong Kong and overseas investors to trade, for the first time, stocks listed on the SSE directly through the SEHK. The preparatory work to launch SHKSC is expected to take approximately six months.
During his remarks to a recent RMB forum, Li talked of a HKEx strategy that could extend the initial equity-based SHKSC project into currency and fixed income products in three to five years, when SEHK anticipates efforts also to collaborate with other Shanghai, and Chinese exchanges.
Li said there is demand to be tapped from international investors, who currently are unable to trade such products in the Mainland, and also Mainland investors, who would also benefit from the proposed offering in Hong Kong.
