Published On: Mon, Sep 1st, 2014

HKEx Completes First Round Of Market Rehearsal For Shanghai-Hong Kong Stock Connect

Charles Li CEO HKEx -

Charles Li CEO HKEx –

Hong Kong Exchanges and Clearing Limited (HKEx) announced on 31 August that the first round of market rehearsal (MR1) for Shanghai-Hong Kong Stock Connect has been completed smoothly and all the planned scenarios in the rehearsal were covered.

The two-day MR1 was conducted on 30 and 31 August. It allowed Participants to ascertain their system readiness for the programme. Both Northbound and Southbound trading processes, as well as clearing and settlement cycles in Hong Kong and Shanghai, were verified.

The exercise also provided the opportunity for Participants to familiarise themselves with the trading features of Northbound trading and test their trading and clearing operations.

On 30 August, among other things, one of the Northbound stocks was simulated to have its aggregate foreign shareholding reaching 28 per cent, and further buy orders of that stock were not accepted until the shareholding lowered to below 26 per cent.

31 August rehearsal, among other things, simulated the scenario where the Northbound daily quota was exceeded, and no further buy orders were accepted for the remainder of the trading session.

This weekend’s MR1, together with last weekend’s connectivity test and the next round of market rehearsal (MR2) scheduled for 13 September, is designed to enable Participants to verify their readiness to participate in Shanghai-Hong Kong Stock Connect at launch. As our normal practice, HKEx will conduct a detailed analysis of all the testing results after this market rehearsal and take appropriate follow-up actions.

A total of 97 Exchange Participants (EPs), accounting for about 80 per cent of the total market turnover, and 108 CCASS Participants participated in this weekend’s MR1.

* CCASS stands for Central Clearing and Settlement System

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