HONG KONG: HKEX Publishes SZSE’s Plan on ChiNext Market Reform

Tuesday May 12 2020

The Stock Exchange of Hong Kong (HKEX) published a circular announcing that China Connect Exchange Participants (CCEPs) and Trade-through Exchange Participants (TTEPs) are requested to note that Shenzhen Stock Exchange (SZSE) had published a consultation paper on ChiNext Market reform ended on 11 May 2020 (Monday).

The consultation has proposed several changes to the current trading arrangements which will also be applicable to Shenzhen-Hong Kong Stock Connect. The changes would include but not limit to price limits, maximum order size, and dynamic price restriction. Furthermore, a new Executionat-Close (EAC) session for the ChiNext Market, has been proposed.

Based on the relevant announcements made by SZSE, all participants of ChiNext Market, including those trading through Stock Connect, are requested to be technical ready (except the EAC session) by the end of June 2020 for the planned market testing in July 2020.

CCEPs and TTEPs are hereby requested to assess the impact of the proposed new trading arrangements (except the EAC session) to their operations and systems, and be technical ready by the end of June 2020. Further details of the implementation plan including the testing arrangements, will be announced as soon as the details are confirmed by SZSE.

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