HKEx CEO says cross-border trading link connects markets, respects rules
HONG KONG Aug 10 (Reuters) - The cross-border stock investment scheme between Shanghai and Hong Kong is being developed to bridge the differences between the Chinese onshore and offshore markets, Hong Kong Exchanges and Clearing Ltd (HKEx) Chief Executive Charles Li said in a statement on Sunday.
Li said it would be a long process for the mainland market to open and to align with the Hong Kong market, according to the statement published on the HKEx website. (bit.ly/1vsUnwB)
"So we had to figure out a way to connect the markets while respecting the differences between the current regulatory regimes in the Mainland and Hong Kong. We needed to build a bridge connecting the two markets without fundamentally changing them," he said.
The so-called Shanghai-Hong Kong Stock Connect scheme is expected to kick off in October, with no fixed date announced.
Under the scheme, foreign investors will place buy or sell orders on Shanghai's A-share market through brokers located in Hong Kong, while Chinese who want to invest in Hong Kong's H-share market will be able to use brokers in the mainland.
Some constraints including quotas, holiday arrangements, and trading mechanisms will be in place when the scheme is started, Li added in the statement.
Earlier on Wednesday, Li said at a press conference that lingering tax and rights problems related to the exchange connection would be resolved before the October launch.
(Reporting by Grace Li; Editing by Jeremy Laurence)
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