A woman walks past Exchange Square which houses the Hong Kong stock exchange in Hong Kong on April 27, 2022. (DALE DE LA REY / AFP)

HONG KONG - The China Securities Regulatory Commission will work with Hong Kong regulators to expand mutual access between Chinese mainland and Hong Kong financial markets by introducing new measures, including making more stocks eligible under the Stock Connect program.

CSRC Vice-Chairman Fang Xinghai made the remarks at a forum on Friday, saying the securities regulator will push for the inclusion of more mainland-traded companies and Hong Kong-listed foreign companies in the cross-border Stock Connect program.

The CSRC will study whether to introduce a renminbi (RMB) securities trading counter under Southbound Trading of Stock Connect, and support the issuance of mainland government bond futures in Hong Kong, Fang said.

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Hong Kong Chief Executive John Lee Ka-chiu said the measures are significant milestones of the mutual access between the Chinese mainland and Hong Kong financial markets, enriching the investment choices for mainland investors, attracting more overseas enterprises to list in Hong Kong, and providing risk management tools for mainland government bond investments in Hong Kong.

The measures can consolidate Hong Kong’s status as an international financial center, a risk management center, and a global offshore RMB business hub

Paul Chan, Financial Secretary, HKSAR

“I am most grateful that the Central People’s Government has, further to its announcement of establishing mutual access arrangements between the interest rate swap markets of the two places at the beginning of the new-term government, demonstrated to investors once again our country’s support for Hong Kong in consolidating its status as an international financial center,” Lee said.

He added that the measures, after implementation, will facilitate Hong Kong to meet the targets in the National 14th Five-Year Plan (2021-2025), support the high-quality opening-up and development of the mainland’s financial markets and contribute to the progress of RMB internationalization, while achieving concerted development of financial markets in the two places and mutual benefits.

Hong Kong Financial Secretary Paul Chan Mo-po said the measures will broaden the scope for the future development of Hong Kong’s securities market, particularly the internationalization of listed companies as well as the issuance and trading of RMB securities.

“They will facilitate mainland investors to enrich their asset allocation via Southbound Trading of Stock Connect, offer offshore risk management tools for Hong Kong and overseas investors to participate in the mainland government bond investments, and deepen the development of Hong Kong’s offshore RMB market,” Chan said.

The measures can consolidate Hong Kong’s status as an international financial center, a risk management center, and a global offshore RMB business hub, Chan added.

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“I am grateful for the strong support from our country, and will spare no effort to take forward the relevant work,” he said.

According to the official statement published on Friday afternoon, the Hong Kong Special Administrative Region government, the Securities and Futures Commission and the Hong Kong Exchanges and Clearing Limited have already commenced discussions with mainland institutions and will continue the close collaboration with a view to implementing the measures promptly.

Contact the writer at evanliu@chinadailyhk.com