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Financial and Monetary Affairs

Stock Connect

Under the Shanghai-Hong Kong Stock Connect and Shenzhen-Hong Kong Stock Connect, international investors can trade in over 580 shares and over 740 shares listed on the Shanghai and Shenzhen stock exchanges respectively. Mainland investors also get to choose from over 480 Hong Kong-listed stocks.

With effect from 1 May, the daily quota of each of the northbound trading links under the Shanghai-Hong Kong Stock Connect and Shenzhen-Hong Kong Stock Connect was quadrupled to RMB52 billion, while that of each of the southbound trading links was quadrupled to RMB42 billion.

Bond Connect

Northbound trading under Bond Connect has been operating smoothly since its launch in July 2017. There were a number of major breakthroughs in 2018, including full implementation of delivery-versus-payment settlement, the launch of block trade functionality, clarification of tax treatment, and addition of a second electronic trading platform.

Mainland and Hong Kong Closer Economic Partnership Arrangement

The Closer Economic Partnership Arrangement (CEPA) gives Hong Kong's financial service providers and professionals greater market access and flexibility in their Mainland operations. It also enhances Hong Kong's attractiveness to market users and strengthens the city's competitiveness as an international financial centre and the premier capital formation centre for Mainland enterprises.

Belt & Road and International Cooperation

Asian Infrastructure Investment Bank

Hong Kong has been a member of the Asian Infrastructure Investment Bank (AllB) since 2017. The AIIB is a multilateral development bank (MDB) set up to improve social and economic outcomes in Asia by supporting infrastructural development and promoting regional connectivity. It is amongst the MDBS of which Hong Kong is a full and separate member, showcasing the principle of 'one country, two systems.

Hong Kong's capital markets and professional services are well-positioned to support the AllB's operation. The city was the fifth largest service provider to the AllB in 2017.

Asian Development Bank

Hong Kong joined the Asian Development Bank (ADB) in 1969, three years after its establishment. The ADB is an MDB working to reduce poverty in the Asia Pacific region by providing its members with loans, grants and technical assistance to undertake development activities. Since July 1997, the city has continued to participate in the ADB on its own using the name 'Hong Kong, China, demonstrating the principle of 'one country, two systems.

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