Hong Kong Securities and Futures Commission (SFC) and China Securities Regulatory Commission (CSRC) jointly announced a series of new measures on August 3 to further deepen pragmatic cooperation and coordinated development between the two markets.
The announced measures cover a broad range of areas, including listing and financing, index collaboration, futures products, exchange-traded funds (ETFs), internationalization of financial institutions, green finance, and professional qualification facilitation. This reflects the establishment of a comprehensive cooperation framework between the two regulatory bodies, aimed at jointly promoting the high-quality development of both markets.
Both parties believe these initiatives will not only help consolidate and enhance Hong Kong's status as an international financial center but also, through regulatory cooperation, drive the development of premier investment banks and investment institutions. This will encourage deeper participation from both markets in global financial governance and regional regulatory collaboration, further boosting the international influence of China's capital markets.
The specific measures include: continuing to support eligible domestic enterprises in listing and financing in Hong Kong; supporting eligible Hong Kong-listed companies to seek domestic listings; and supporting eligible Hong Kong enterprises to issue bonds on the mainland, enabling them to better utilize both markets and resources for financing and development. The measures also support enhanced cooperation between index companies from both sides to launch more indices based on Chinese assets, thereby increasing the international influence of Chinese indices and assets. Deeper collaboration in the futures market will be fostered, with support for Hong Kong to introduce more renminbi-denominated and settled futures products. Both sides will support institutions in launching more ETF products that are based on the two markets and aligned with the layout of China's modern industrial system, with a fast-track registration mechanism for conventional stock ETFs. Qualified securities and fund companies with solid capabilities, standardized operations, and high management standards will be supported in going global, using Hong Kong as a base to expand international business in an orderly manner and to build first-class investment banks and institutions. A climate-related transition plan disclosure pilot will be promoted for listed companies in both markets, working together to advance the green finance agenda. Research will be conducted to facilitate simplified procedures for Hong Kong banking professionals engaged in securities and futures businesses to apply for relevant domestic qualifications.
On this basis, the Hong Kong SFC and the CSRC will further strengthen regulatory coordination between the two markets and deepen participation in global financial governance, providing a solid foundation for the stable and healthy operation of both markets. Specific measures include: continuously strengthening regulatory cooperation on listing and issuance between the two markets, promoting cross-border direct financing for eligible enterprises in an orderly manner, and fostering complementary advantages and coordinated development between the two markets. Regulatory cooperation between the intermediary institutions of both markets will be consistently enhanced, with mechanisms for risk monitoring and information sharing being improved to promote the compliant and stable operation of industry institutions. Both parties will deeply engage in global financial governance and regional regulatory cooperation, jointly promoting the stable and healthy development of regional capital markets.
Dr. Huang Tianyou, Chairman of the Hong Kong SFC, stated, "I would like to express my sincere gratitude to the CSRC. The introduction of these new measures is a testament to the close collaboration and joint efforts of the two securities commissions. This series of important initiatives, focusing on core areas, will help enhance the influence and attractiveness of China's capital markets on the global financial stage and provide crucial support for the further development of Hong Kong's capital market. At the same time, these arrangements clearly outline the development path for the two capital markets towards a higher level of connectivity, injecting strong momentum into the continuous deepening of collaborative development. Looking ahead, Hong Kong will continue to play its irreplaceable role and leverage its unique advantages in the nation's process of building a financial powerhouse."
Ms. Liang Fengyi, Chief Executive Officer of the Hong Kong SFC, stated, "We will continue to work closely with the CSRC to refine these measures and implement the relevant arrangements. Our goal is to enhance the influence and competitiveness of the institutions, professionals, and products of the mainland and Hong Kong capital markets within the global financial system, as well as to provide global investors with more opportunities to share in the fruits of China's development. I and the Commission will also continue to actively promote regional regulatory cooperation, fostering the integration and stable development of regional markets."