Linklaters advises on establishment of Shenzhen-Hong Kong Stock Connect

As part of another ground-breaking mandate, Linklaters has advised the Hong Kong Exchanges and Clearing Limited (“HKEx”) on the establishment of the Shenzhen-Hong Kong Stock Connect.

The programme will create trading and clearing links that enable Hong Kong and overseas investors to trade in securities listed on the Shenzhen Stock Exchange and Mainland Chinese investors to trade in securities listed on the Stock Exchange of Hong Kong. 

“This is another leap forward in the financial integration of Hong Kong and Mainland China as well as between Mainland China and the rest of the world,” said Linklaters capital markets partner Chin-Chong Liew.

“This mandate follows the success of the Shanghai-Hong Kong Stock Connect which Linklaters also advised upon and is a clear demonstration of our expertise in delivering complex and innovative client solutions,” Mr. Liew added.

The innovative China Connect legal concepts and framework have been further tested, refined and built upon with the extension to Shenzhen Connect. Hong Kong again leads the way internationally in providing access and connection with significant financial infrastructures in Mainland China,” Mr. Liew said. “Through such exchanges, China’s vast savings will make a significant contribution to global financial markets which are underpinned by unique contractual and legal frameworks between the exchanges and clearing houses which promote financial efficiency and stability,” Mr. Liew added.

This complex project required specialist input from Linklaters’ financial market, regulatory and corporate experts across Hong Kong, Beijing and Shanghai and the team was led by Hong Kong partners Chin-Chong Liew and Stephen Fletcher.