13 November 2017
Linklaters Guide to China-Hong Kong Stock Connect
with a Supplement on Bond Connect
The establishment of the China-Hong Kong Stock Connect and the Bond Connect programmes is a significant milestone in mutual market access between China and the world and has brought with it significant opportunities as well as challenges to the Chinese and international capital markets.
Linklaters is pleased to have been involved in the set-up of the China-Hong Kong Stock Connect, advising the Hong Kong Exchange and Clearing Limited (HKEX) on this innovative programme. In addition to advising HKEX on the set-up of the China-Hong Kong Stock Connect, Linklaters has advised (and continue to advise) a wide range of market participants (including banks, securities houses, prime brokers, private banks as well as fund houses on the buy-side) on the various legal issues associated with the trading of A-shares through the China-Hong Kong Stock Connect.
The Linklaters team has played a leading role in launching Bond Connect this year and Stock Connect since its inception in 2014, advising the Hong Kong Exchange and a number of key market participants active in the connect markets. Based on this deep understanding of the schemes and having advised a number of key participants, it has published a Linklaters Legal Guide which gives guidance to investors on how to invest in these mutual market access programmes.
Linklaters Partner Chin-Chong Liew said “We expect foreign investment into the China Bond market to increase substantially over the next few years with countries in Europe and the U.S. among the most active. One of the key features of the Bond Connect is the recognition of investors’ ownership rights which will now make this market very attractive. Having been actively involved in setting up Bond Connect this year and Stock Connect the last few years, we are convinced that the legal framework and infrastructure currently in place in Mainland China and Hong Kong are sufficiently robust to support the operation and expansion of the connect schemes and provide the requisite high level of legal certainty expected by the international community.”
If you would like more information on the Stock Connect or Bond Connect please contact Chin-Chong Liew.