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

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

The second round of U.S.-brokered talks between Russia and Ukraine concluded in Abu Dhabi, the United Arab Emirates (UAE) on Thursday, with both sides agreeing to a large-scale prisoner exchange but failing to achieve substantive breakthroughs on core issues such as territorial arrangements and a ceasefire.

According to Ukraine, the talks were conducted trilaterally before moving to group consultations. Ukraine's National Security and Defense Council Secretary Rustem Umerov said the Ukrainian delegation sought a "dignified and lasting peace," without disclosing specific outcomes.

Kyrylo Budanov, the head of Ukraine's presidential office, said the trilateral negotiations had been truly constructive, thanking the U.S. and the UAE for their mediating roles.

Russia's presidential special envoy Kirill Dmitriev said on Thursday that there was progress and a positive movement forward in peace talks with Ukraine.

The talks ended with no joint political or security statement, underscoring persistent differences between Russia and Ukraine on key matters, including territorial disputes, ceasefire arrangements, and security guarantees.

U.S. President Donald Trump's special envoy Steve Witkoff said representatives from the three countries reached a consensus on a prisoner swap.

In a readout of the talks he posted on social media, Witkoff described the discussions as constructive and focused on how to create the conditions for a durable peace.

The delegations had wide-ranging discussions over the past two days on the remaining open issues, including methods for implementing a ceasefire and monitoring the cessation of military activities, according to Witkoff.

He added that the United States and Russia had agreed to establish a military-to-military dialogue to be led by commander of U.S. European Command Alexus Grynkewich.

Following the talks, Russia and Ukraine conducted their first large-scale prisoner exchange in nearly five months, with each side returning 157 detainees. Ukrainian President Volodymyr Zelensky said those released included both military personnel and civilians.

Zelensky also said Thursday that the next peace talks with the delegations of the U.S. and Russia will be held soon. "Further meetings are planned in the near future, likely in the United States," Zelensky said in his evening address.

However, no timetable or arrangements for a next round of talks were announced, highlighting continued uncertainty in the political settlement process.

The second round of talks began on Wednesday. The previous meeting of the trilateral working group on security issues took place from Jan 23 to 24 in Abu Dhabi. It marked the first trilateral engagement since the escalation of the conflict in February 2022, although no concrete agreement or joint statement was announced afterward.

In a statement issued earlier, the United Arab Emirates (UAE) Ministry of Foreign Affairs welcomed cooperation between Russia and Ukraine on the prisoner exchange, saying it demonstrated the UAE's role as a reliable mediator in easing the crisis and promoting constructive dialogue.

2nd round of Russia-Ukraine talks ends in UAE with prisoner swap deal, key differences unresolved

2nd round of Russia-Ukraine talks ends in UAE with prisoner swap deal, key differences unresolved