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The Shanghai Stock Exchange and the Shenzhen Stock Exchange issued proposals to include the stocks of companies with a differential voting rights structure in the Shanghai-Hong Kong Stock Connect Scheme and the Shenzhen-Hong Kong Stock Connect Scheme, in a move to further expand the scope the Stock Connect Schemes.
The move comes a month after mainland and Hong Kong regulators agreed in principle to further expand the Stock Connect.
Northbound trading, which allows offshore investors to buy China-listed shares, will include stocks with a market capitalization of 5 billion yuan or more and meet certain liquidity criteria. The scope of southbound trading, which allows mainland investors to buy Hong Kong stocks, will be expanded to include stocks of foreign companies with primary listings in Hong Kong that are constituents of Hang Seng composite indices.
The exchanges are also proposing to increase the number of trading days.
China aims to roll out the Swap Connect scheme with Hong Kong by the end of March, compared with an original target time-frame of within six months after a July announcement, reported Bloomberg News.
The new trading link allows mutual access to interest rate swaps trading to promote financial derivatives markets.
The PBOC shared draft rules for Swap Connect with some mainland financial institutions last month, the report said.
Swap Connect would include a daily limit of 20 billion yuan (HK$23.1 billion) for net interest rate swap transactions, the report said.