(Yicai Global) Oct. 12 -- Another important step on the road to launching the much-anticipated Shenzhen-Hong Kong Stock Connect was reached yesterday when an agreement was signed to officially set it up.
The signatories were Shenzhen's and Hong Kong's stock exchanges, the China Securities Depository and Clearing Company Limited and Hong Kong Securities Clearing Company Limited. The heads of all four inked the accord at the Shenzhen bourse yesterday.
The Connect "will complete our plan to link the secondary equity markets of the mainland and Hong Kong," Hong Kong Stock Exchange CEO Charles Li said at the signing ceremony. "We're looking forward to its launch and welcome today's signing of the four-party agreement."
Following the successful model of the Shanghai-Hong Kong Stock Connect, the agreement will allow investors to buy and sell shares listed in mainland and Hong Kong markets.
The agreement is "an important milestone that represents a consensus on the trading and clearing mechanisms between the two exchanges and two clearing houses. It is also the basis and pre-condition for various other agreements relating to the implementation of Shenzhen Connect. The successful signing of the Four-party Agreement underlines our achievements in preparing for the Shenzhen Connect, paving the way for the early launch of the initiative," commented Shenzhen's stock exchange chairman Wu Lijun.
"The Stock Connect gives us a model for mutual market access beyond equity, and we will continue to work on rising development in other asset classes to offer the market more flexibility, more products and more opportunities," said Hong Kong stock exchange chairman C K Chow.