Stock Connect is a securities trading and clearing link scheme by Hong Kong Exchanges and Clearing Limited (HKEx), Shanghai Stock Exchange (SSE) and China Securities Depository and Clearing Corporation Limited (ChinaClear) and, most recently, extended to include a link between Hong Kong and the Shenzhen Stock Exchange, 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.
Stock Connect 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 services for Stock Connect via our established Hong Kong link from launch (from November 2014 for the Shanghai Stock Exchange program and from December 2016 for the Shenzhen Stock Exchange program), and provides settlement and custody functionalities for China A-shares eligible under the programme from both SSE and SZSE. Our enhanced offering includes:
- Standard and Enhanced Special Segregated Account (SPSA and SPSA+) models to remove the requirement to pre-deliver securities
- DvP/RvP mechanism
- Extended settlement deadlines
UCITS clients in Luxembourg can use a combination of our China Bond Link scheme and our Stock Connect linkages to obtain easy access the full range of Chinese securities.