The Asia Securities Industry & Financial Markets Association has welcomed news that the China Securities Regulatory Commission (CSRC) and the Securities and Futures Commission (SFC) have agreed to introduce block trading via the Stock Connect Channel.
Offshore investors will be able to conduct block trades on the Shanghai Stock Exchange (SSE) and the Shenzhen Stock Exchange (SZSE) through the Northbound trading of Stock Connect via the Stock Exchange of Hong Kong (HKEX).
Speaking to The DESK, Lyndon Chao, managing director and head of equities and post trade at ASIFMA, says: “Global investor inflows via Stock Connect has stabilised over the years and now needs additional enablers in the toolbox such as block trading and hedging instruments to help catalyse trading activity to the next level.”
Mainland investors will be able to conduct manual trades on the HKEX through the Southbound trading of Stock Connect. Foreign investors can currently only engage in block trading through the Qualified Foreign Investor (QFI) Channel.
Stock Connect Block Trading is one of many industry recommendations presented in the China Capital Markets White Paper which was released by ASIFMA in late June.
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