China’s market regulator launches 5 measures to help rescue Hong Kong’s battered stock market

The measures embody plans to calm down the eligibility standards for exchange-traded fund (ETF) merchandise within the Inventory Join mechanism that hyperlinks the 2 monetary hubs. The watchdog additionally goals to loosen the itemizing guidelines for Chinese language corporations eager to launch preliminary public choices (IPO) in Hong Kong.

The CSRC mentioned it might improve its communication and coordination with the related departments to help certified mainland business leaders wishing to go public in Hong Kong.

Different measures embody permitting certified actual property funding trusts (REITs) from the mainland and Hong Kong entry to the Shanghai-Shenzhen-Hong Kong Inventory Join channel, and together with yuan-denominated inventory buying and selling counters on the Hong Kong inventory facet of the cross-border mechanism.

Earlier within the week, Xia Baolong, Beijing’s prime man on Hong Kong affairs, mentioned town supplied a number of distinctive benefits resembling its rule of regulation, competitiveness and innovation.

He mentioned new insurance policies would proceed to return to help town’s ongoing growth and “maximise the dividends of 1 nation, two system”.

“We warmly welcome the initiatives introduced at this time by the China Securities Regulatory Fee that help the continued growth of Hong Kong’s capital markets,” mentioned Bonnie Chan Yi-ting, the CEO of Hong Kong Exchanges and Clearing (HKEX), the bourse operator.

The measures will deliver extra option to worldwide and mainland buyers, entice extra liquidity to town’s markets and additional improve the competitiveness of Hong Kong, she added.

“We sit up for proceed working carefully with our mainland companions and regulators to organize for the launch of those initiatives,” mentioned Chan.