Stock Connect

Stock Connect is a securities trading and clearing link program by Hong Kong Exchanges and Clearing Limited (HKEx), Shanghai Stock Exchange (SSE) and China Securities Depository and Clearing Corporation Limited (ChinaClear) allowing mutual market access between Mainland China and Hong Kong. It is for this reason one of the main avenues for accessing China-A Shares.

The programme enables Chinese firms to raise money from a broader pool of international investors. At the same time, the quota restricting the maximum trading volume via the Stock Connect allows the Chinese government to open up the market in a step-by-step manner.

Clearstream has offered comprehensive settlement and custody services for Stock Connect via our established Hong Kong link from launch, and have been continually improving our service since then. Recent enhancements include:

  • Standard and Enhanced Special Segregated Account (SPSA and SPSA+) models to remove the requirement to pre-deliver securities
  • DvP/RvP mechanism
  • Extended settlement deadlines

In August, the Chinese Government announced that they had approved the extension of the Stock Connect scheme to include a link between Hong Kong and the Shenzhen Stock Exchange - the other major Chinese exchange. Clearstream is currently working to extend its services to cover this link once launched.