The Securities and Futures Commission (SFC) and the China Securities Regulatory Commission (CSRC) have introduced new measures to deepen cooperation between Hong Kong and Mainland China’s capital markets.
Their joint framework focuses on expanding financial products, supporting cross-boundary fundraising and listings, and enhancing regulatory coordination.
Among the initiatives are a fast-track registration mechanism for conventional equity exchange-traded funds (ETFs) and support for ETF products linked to both markets and China’s modern industrial system.
Both regulators will also deepen cooperation in the futures market to support a wider range of renminbi-denominated and settled futures products in Hong Kong.
To improve fundraising access, the measures support eligible Mainland enterprises seeking listings in Hong Kong, eligible Hong Kong-listed companies seeking listings in the Mainland, and eligible Hong Kong companies issuing bonds in the Mainland.
The measures will encourage index providers to launch more indices based on Chinese assets to raise the international profile of Chinese indices and assets.
Cross-boundary institutional support
For industry professionals and institutions, the framework supports qualified Mainland securities firms and fund companies using Hong Kong as a base for international expansion.
The SFC and CSRC are also exploring ways to streamline applications for relevant Mainland securities and futures professional qualifications by eligible professionals working at Hong Kong banks.
On the regulatory front, both bodies will strengthen risk monitoring and information-sharing mechanisms while enhancing oversight of market intermediaries.
They will also promote pilot programmes for listed companies in both markets to disclose climate-related transition plans to advance green finance initiatives.
“This series of important measures focuses on key areas and will help enhance the international influence and attractiveness of China’s capital markets,”
said Dr Kelvin Wong, Chairman, SFC.
“We will continue to work closely with the CSRC to take forward these initiatives and implement the related arrangements, with the aim of enhancing the global influence and competitiveness of the institutions, professionals and products of the Mainland and Hong Kong capital markets,”
said Julia Leung, Chief Executive Officer, SFC.
Featured image credit: Edited by Fintech News Hong Kong, based on image by Who is Danny via Magnific
