More than 1,000 Chinese stocks—as well as those of multinational companies—will be included in an expanded scheme that allows investors greater access to mainland shares, while boosting trading liquidity in Hong Kong, reports the Financial Times. The securities watchdogs in both mainland China and Hong Kong have announced an agreement to expand the scope of eligible stocks under the Stock Connect scheme, linking the Hong Kong bourse with those of Shanghai and Shenzhen.
The northbound trading will include stocks with a market capitalisation of RMB 5 billion ($717 million) or above that meet liquidity criteria. Southbound trading expansion will include stocks of primary-listed foreign companies that are constituents of Hang Seng composite indices.
The move will boost the number of mainland stocks eligible for trading via the northbound link to about 2,516, up from the current 1,458, according to data published on Tuesday by mainland brokerage CICC.
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