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Chinese mainland, HK agree to broaden eligible stock ETFs under Stock Connect program

China

Chinese mainland, HK agree to broaden eligible stock ETFs under Stock Connect program
China

China

Chinese mainland, HK agree to broaden eligible stock ETFs under Stock Connect program

2024-04-20 17:53 Last Updated At:19:37

China's three major stock exchanges, namely, the Hong Kong Exchanges and Clearing Limited (HKEX), the Shanghai Stock Exchange (SSE) and the Shenzhen Stock Exchange (SZSE), agreed to expand the scope of eligible stock exchange-traded funds (ETFs) under the Stock Connect program, following China's unveiling of measures on Friday to boost cooperation between the capital markets of the Chinese mainland and Hong Kong.

The China Securities Regulatory Commission (CSRC) announced five measures on Friday to enhance Stock Connect, which consists of the Shanghai-Hong Kong and Shenzhen-Hong Kong stock connect schemes, and to bolster Hong Kong's status as an international financial center.

The Shanghai-Hong Kong and Shenzhen-Hong Kong stock connect schemes, which were launched in 2014 and 2016, respectively, provide mainland and international investors with direct access to each other's stock markets.

According to the measures announced by the CSRC, the scope of eligible ETFs under the Shanghai-Hong Kong and Shenzhen-Hong Kong stock connect schemes will be expanded. Additionally, Real Estate Investment Trusts (REITs) will be incorporated into the schemes, and support will be provided for the inclusion of yuan-denominated securities in southbound stock connect scheme trading. Furthermore, the CSRC will enhance mutual fund recognition and support the listing of leading mainland companies in the Hong Kong market.

Based on CSRC's optimization measures, the eligibility criteria for ETFs, including the assets under management requirement and the index weighting requirements, will be relaxed to support the continued development of Stock Connect, allowing more investors to allocate assets in both the Chinese mainland and Hong Kong in an efficient and cost-effective way. Related measures are expected to take effect about three months after the announcement.

"Since the inclusion of ETFs in Stock Connect, it has provided great convenience and many opportunities for cross-border investment for investors in both the Chinese mainland and Hong Kong. With the implementation of these five measures targeting Hong Kong's capital market, it is expected that the number and scale of stock ETFs in Stock Connect will significantly increase. This will further enrich investment options and facilitate asset allocation in each other's markets for investors. Additionally, these measures will enhance Hong Kong's position as a global financial center and promote the coordinated development of capital markets in both the mainland and Hong Kong," said Zhao Yue, chief economist of Hong Kong-based Chief Securities.

Chinese mainland, HK agree to broaden eligible stock ETFs under Stock Connect program

Chinese mainland, HK agree to broaden eligible stock ETFs under Stock Connect program

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Powerful tornado devastates small town in Texas, leaving widespread destruction

2024-05-28 12:28 Last Updated At:12:37

A powerful tornado ripped through a small town in the U.S. south-central state of Texas on Saturday night, triggering widespread destruction to numerous houses and vehicles.

Valley View, a town in northern Texas, was left in a state of chaos after being struck by the most severe tornado the state has experienced in the past ten years.

Accompanied by hail, the tornado devastated houses and vehicles, and toppled electricity poles in the town. It also ripped through a gas station where people were taking cover.

Fernando had a shop next to the gas station. Unfortunately, the tornado completely destroyed his shop.

"This is a total devastation. I have never seen something like this. It was terrible and I couldn't conceive the strength that it had. Indeed, it was only an F2, not even an F3 or more. You can see the destruction that we have here. It's a lot of loss, big loss," he said.

The Fujita scale, or F-Scale, is a rating system used to measure the intensity of tornadoes, with F0 representing the lowest level and F5 the highest one.

Meanwhile, at least 20 people have been killed after storms hit the U.S. states of Texas, Arkansas, Oklahoma and Kentucky over the Memorial Day weekend.

In Texas, the storm destroyed a roadside travel stop and a community of mobile homes in Cooke County.

Texas Governor Greg Abbot said at a press briefing on Sunday that seven people had been killed and more than 100 others injured in the storm.

Powerful tornado devastates small town in Texas, leaving widespread destruction

Powerful tornado devastates small town in Texas, leaving widespread destruction

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