Stock Connect and Bond Connect are cross-boundary investment channels that connect:
- for StockConnect, the Hong Kong Stock Exchange with, respectively, the Shenzhen Stock Exchange and Shanghai Stock Exchange,
- for BondConnect, HKEX with the Bond Market in Mainland China.
Under the Stock Connect program, investors in each market are able to trade shares on the other market using their local brokers and clearing houses. The Shenzhen Connect is aimed at giving global investors access to stocks in the tech-heavy Shenzhen market via Hong Kong Stock Exchange (HKEX), it provides access to China’s new economy. A total of 417 stocks on the HKEX are eligible for trading, and 881 stocks are eligible on the Shenzhen Stock Exchange (SZEX). The list of stocks that are eligible for Northbound trading is available in the Stock Connect section of the HKEX website and will be updated daily.
Bond Connect is a new mutual market access scheme that allows investors from Mainland China and overseas to trade in each other’s bond markets through connection between the related Mainland and Hong Kong financial infrastructure institutions.
Northbound Trading commenced on 3 July 2017, allowing overseas investors from Hong Kong and other regions to invest in the China interbank bond market (CIBM) through mutual access arrangements in respect of trading, custody and settlement. Southbound Trading will be explored at a later stage.