[ET Net News Agency, 18 July 2018] The Stock Exchange of Hong Kong, a wholly-owned
subsidiary of Hong Kong Exchanges and Clearing Limited (HKEX)(00388), said it reached a
consensus yesterday with the Shanghai and Shenzhen stock exchanges on adjusting the
inclusion arrangements for eligible securities for Stock Connect's Southbound trading.
The agreement is comprised of three points:
The meeting acknowledged that as mainland investors are not yet familiar with weighted
voting rights (WVR) companies, there is a need to consider the maturity and regulatory
practices of the two markets when including WVR companies in the list of eligible
securities for Southbound trading under Stock Connect.
An initial Special Stability Trading Period (SSTP) will be required for Hong Kong-listed
WVR companies, following which the WVR shares will be included in Southbound trading under
Stock Connect if such shares are otherwise eligible for inclusion under the current Stock
Connect rules.
The three exchanges have agreed to set up a joint working group to formulate the
specific programmes and supplementary rules for the inclusion of WVR companies in Stock
Connect trading as soon as possible. (KL)