Trade limit on China-Hong Kong stock links expanded
The fourfold daily quota increase will enhance the fluency and certainty of stock transactions, says official
Securities regulators in mainland China and Hong Kong have agreed to expand the daily transaction quotas of both the Shanghai-Hong Kong and Shenzhen-Hong Kong Stock Connect by four times, Xinhua news agency reported.
Overseas investors who invest in the Shanghai and Shenzhen stock market via the stock link will enjoy a new daily limit of 52 billion yuan (US$8.29 billion), up from 13 billion yuan.
Mainland investors who park their money in the Hong Kong stock market via the link, the total daily limit has increased to 42 billion yuan from 10.5 billion yuan.
Chen Delin, director of Hong Kong Monetary Authority, said expanding the daily limit will further enhance the fluency and certainty of stock transactions.
It will also help ensure that the MSCI Emerging Markets Index will incorporate the A-shares market successfully this year, he said.
The new rule will take effect on May 1.