Notice of the Shenzhen Stock Exchange on Issues Concerning the Launching of the Shenzhen-Hong Kong Stock Connect

 2018-06-26  42


· Area of Law: Securities

· Level of Authority: Industry Regulations

· Date issued:11-25-2016

· Effective Date:12-05-2016

· Status: Effective

· Issuing Authority: Shenzhen Stock Exchange

 

Notice of the Shenzhen Stock Exchange on Issues Concerning the Launching of the Shenzhen-Hong Kong Stock Connect
All market participants:
According to the Joint Announcement of the China Securities Regulatory Commission and the Securities and Futures Commission of Hong Kong on November 25, 2016, the interconnection mechanism for transactions in the Shenzhen and Hong Kong stock markets (hereinafter referred to as the “Shenzhen-Hong Kong Stock Connect”) will be officially launched on December 5, 2016. You are hereby notified of the relevant issues as follows:
I. China Todaywin Market Service Co., Ltd. (hereinafter referred to as “Todaywin”) under the Shenzhen Stock Exchange (“SZSE”) will serve as the securities trading service company of the SZSE to provide services for the southbound trading link (“STL”).
II. Todaywin designates the website of the SZSE (www.szse.cn) to release the STL trading day arrangements, list of STL stocks, and other information. Under the circumstances of addition and removal of STL stocks as set forth in Articles 57 and 58 of the Measures of the Shenzhen Stock Exchange for the Implementation of Shenzhen-Hong Kong Stock Connect, Todaywin will release the list of stocks to be added or removed and the specific effective dates at the website of the SZSE. Market participants may obtain such information under the “Shenzhen-Hong Kong Stock Connect Column” at the website of the SZSE.
III. 121 members and other trading participants have had the trading privileges for STL under the Shenzhen-Hong Kong Stock Connect with the consent of the SZSE, and have each signed an Agreement on the Southbound Trading Link Services with Todaywin. See annex for the specific list. Market participants may obtain such information under the “Shenzhen-Hong Kong Stock Connect Column” at the website of the SZSE.
IV. Where a company listed on the Stock Exchange of Hong Kong Limited (“SEHK”) excludes STL investors from participating in a rights issue or open offer as set forth in paragraph 2 of Article 116 of the Measures of the Shenzhen Stock Exchange for the Implementation of Shenzhen-Hong Kong Stock Connect, the SZSE may choose not to include its stock in STL stocks, or remove its stocks from STL stocks.
V. The SZSE temporarily waives the trading unit traffic charges that occur from participation in the STL by members of the SZSE and other trading participants.
VI. All member entities should continue to effectively provide investor education and service and conduct suitability management, risk disclosure, and other work, strengthen internal control, prevent and control risks, and ensure the smooth and orderly operation of their Shenzhen-Hong Kong Stock Connect business.
Annex: List of the First Group of Members Participating in the Southbound Trading Link and Other Trading Participants
Shenzhen Stock Exchange
November 25, 2016