The measures include plans to relax the eligibility criteria for exchange-traded fund (ETF) products in the Stock Connect mechanism that links the two financial hubs. The watchdog also aims to loosen the listing rules for Chinese companies wanting to launch initial public offerings (IPO) in Hong Kong.
The CSRC said it would enhance its communication and coordination with the relevant departments to support qualified mainland industry leaders wishing to go public in Hong Kong.
Other measures include allowing qualified real estate investment trusts (REITs) from the mainland and Hong Kong access to the Shanghai-Shenzhen-Hong Kong Stock Connect channel, and including yuan-denominated stock trading counters on the Hong Kong stock side of the cross-border mechanism.
Earlier in the week, Xia Baolong, Beijing’s top man on Hong Kong affairs, said the city offered several unique advantages such as its rule of law, competitiveness and innovation.
He said new policies would continue to come to support the city’s ongoing development and “maximise the dividends of one country, two system”.
“We warmly welcome the initiatives announced today by the China Securities Regulatory Commission that support the continued development of Hong Kong’s capital markets,” said Bonnie Chan Yi-ting, the CEO of Hong Kong Exchanges and Clearing (HKEX), the bourse operator.
The measures will bring more choice to international and mainland investors, attract more liquidity to the city’s markets and further enhance the competitiveness of Hong Kong, she added.
“We look forward to continue working closely with our mainland partners and regulators to prepare for the launch of these initiatives,” said Chan.