Shanghai-Hong Kong Stock Connect 沪港通

Shanghai-Hong Kong Stock Connect

Shanghai-Hong Kong Stock Connect, or Hu-Gang Tong, is a pilot program allowing investors in Hong Kong and on the mainland to trade a range of stocks listed on the other side’s bourse through securities firms in their own market. It is part of the central government’s efforts to connect the domestic securities market with those overseas. Rules for the pilot program, published in April, imposed a 300 billion yuan limit on the amount of Shanghai-listed shares that investors in Hong Kong can buy. The limit the other way was set at 250 billion yuan. Analysts say the program supplements and may even compete with the Qualified Foreign Institutional Investor program, which began in 2003 and allows foreign investors to trade securities including stocks, bonds and index futures in the Chinese market.