Hong Kong Stock Exchange (00388) announced that following the successful completion of the test launch on May 11, adjustments to the real-time trading volume and daily quota balance for northbound trading were officially implemented on May 13.
On April 12, the Shanghai and Shenzhen Stock Exchanges announced adjustments to the disclosure mechanism for Shanghai-Hong Kong and Shenzhen-Hong Kong Stock Connect trading. Real-time disclosure of the buying and selling transaction volumes for northbound trading, as well as the total transaction value, will no longer be made public. In addition, the real-time daily quota balance for northbound trading will only be displayed when the balance falls below thirty percent, otherwise it will be shown as “available”.
Market participants indicate that this change means that the market can no longer easily observe the real-time situation of foreign capital buying and selling A-shares through the Shanghai-Hong Kong and Shenzhen-Hong Kong Stock Connect programs.
Northbound funds refer to the trading funds that flow from Hong Kong to the north to purchase stocks in the Shenzhen and Shanghai markets, also known as “Shanghai-Hong Kong Stock Connect”. It is one of the ways for capital markets between mainland China and Hong Kong to be interconnected.