The Hong Kong Special Administrative Region Government today expressed its sincere gratitude for the nation's support for further expanding mutual access between the financial markets of the Mainland and Hong Kong.

China Securities Regulatory Commission Vice Chairman Fang Xinghai stated that the commission will move forward to include securities of overseas enterprises which have primary listing in Hong Kong and fulfil certain conditions in the eligible scope of the southbound trading under Stock Connect.

He also noted that the commission will study to set up a renminbi (RMB) securities trading counter under the Stock Connect southbound trading and support the issuance of Mainland government bond futures in Hong Kong.

Chief Executive John Lee said the above measures are significant milestones of the mutual access between the 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.

After implementation, the measures will further facilitate Hong Kong to meet the targets in the National 14th Five-Year Plan, support the high-quality opening up and development of the Mainland's financial markets and contribute to the progress of RMB internationalisation, while achieving concerted development of the financial markets in the two places and mutual benefits.

“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 Hong Kong SAR Government, demonstrated to investors once again our country's support for Hong Kong in consolidating its status as an international financial centre,” the Chief Executive added.

Financial Secretary Paul Chan also thanked the country for its strong support, stressing that he will spare no effort to take forward the relevant work.

He said the measures will broaden the scope for the future development of Hong Kong's securities market, particularly the internationalisation of listed companies as well as the issuance and trading of RMB securities.

Additionally, they will facilitate Mainland investors to enrich their asset allocation via the 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.

The measures can also further consolidate Hong Kong's status as an international financial centre, a risk management centre and a global offshore RMB business hub, Mr Chan remarked.

The Hong Kong SAR Government, the Securities & Futures Commission (SFC) and the Hong Kong Exchanges & Clearing (HKEX) have already started discussions with relevant Mainland institutions and will continue the close collaboration with a view to implementing the measures promptly.

As of August, there were 388 and 545 eligible securities available for trading in Hong Kong dollars by Mainland investors through the Shanghai Stock Exchange and the Shenzhen Stock Exchange under the southbound trading of Stock Connect, which did not cover overseas listed companies and RMB-denominated securities.

The 2022-23 Budget announced that a working group formed by the SFC, the HKEX and the Monetary Authority would start making preparations on allowing stocks traded via the southbound trading of Stock Connect to be denominated in RMB and discuss the matter with regulatory authorities and relevant organisations in the Mainland.

The Hong Kong SAR Government will roll out supporting measures to waive the stamp duty on stock transfers paid by market makers in their transactions so as to increase the liquidity of RMB‑denominated stocks.

It plans to submit legislative amendments to the Legislative Council within this year.