MARKETS & INVESTING | Staff Reporter, Hong Kong

Trading quota between Hong Kong and Mainland expanded fourfold from $13b to $52.54

This will kick into effect on May 1.

The daily quotas for the stock connect schemes between Hong Kong and the Mainland will be expanded fourfold from $13.13b (10.5b yuan) to $52.54b (42b yuan) starting May 1 following an agreement from the China Securities Regulatory Commission and the Securities and Futures Commission of Hong Kong, People's Bank of China Governor Yi Gang revealed at the Boao Forum for Asia.

The northbound quota for the Shanghai and Shenzen stock connect schemes was also quadrupled from $16.26b (13b yuan) to $65.04b (52b yuan).

The reform between the mutual access arrangement between the two markets was lauded by the Hong Kong Monetary Authority Chief Executive Norman Chan."The expansion of daily quota will further enhance the smoothness and certainty of trading, and help ensure that the process for the inclusion of A-shares in the MSCI Emerging Markets Index this year is orderly," he said. 

"This will facilitate the healthy development of Stock Connect, and facilitate international investors' access to the Mainland's stock markets and Mainland investors' access to Hong Kong's stock market, thereby reinforcing Hong Kong's status as an international financial centre,” said Finance Secretary Paul Chan. “Hong Kong's capital markets will play a more significant role and make greater contributions in the two-way opening-up of the Mainland's capital markets to the rest of the world."


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