Hong Kong - China: Inclusion of Chinese ETFs in Stock Connect Program (northbound)
Clearstream Banking1 informs customers that, effective
15 December 2022
and as part of its ongoing commitment to enhance its products and services in the Chinese market, customers can settle and safekeep eligible Chinese Exchange Traded Funds (ETFs) via the northbound Stock Connect Program.
As a reminder, Clearstream Banking is the only ICSD to offer comprehensive services for Stock Connect via its established Hong Kong link since the initial launch (November 2014 for the Shanghai Stock Exchange (SSE) program and December 2016 for the Shenzhen Stock Exchange (SZSE) program). Clearstream Banking provides settlement and custody services for Chinese A-shares eligible under the program from both SSE and SZSE. The enhanced offering includes:
- Standard and Enhanced Special Segregated Account (SPSA and SPSA+) models to remove the requirement to pre-deliver securities;
- Real time delivery versus payment (RDP) settlement model;
- Extended settlement deadlines.
For more information about the inclusion of ETFs and ETF eligibility, customers can refer directly to the official Stock Connect website as well as the Market Link Guide - Hong Kong - China Connect securities.
Impact on customers
- Settlement instruction deadlines and instruction formats remain the same as the current northbound Stock Connect Program.
- Customers can leverage their current Stock Connect setup to settle and safekeep eligible Chinese ETFs – no additional requirements.
- For trading northbound Stock Connect ETFs, customers should consult their brokers for any detailed trading arrangements.
For further information, customers may contact Clearstream Banking Client Services or their Relationship Officer.
1. Clearstream Banking refers collectively to Clearstream Banking S.A., registered office at 42, avenue John F. Kennedy, L-1855 Luxembourg, and registered with the Luxembourg Trade and Companies Register under number B-9248, and Clearstream Banking AG (for Clearstream Banking AG customers using the Creation platform), registered office at 61, Mergenthalerallee, 65760 Eschborn, Germany and registered in Register B of the Amtsgericht Frankfurt am Main, Germany under number HRB 7500.