The Hong Kong Special Administrative Region Government today welcomed the decision by the China Securities Regulatory Commission and the Securities & Futures Commission to jointly introduce block trading (manual trades) under the mutual market access programme.

According to the joint announcement issued by the two regulatory bodies, offshore investors will be able to conduct block trades on the Shanghai Stock Exchange and the Shenzhen Stock Exchange through the northbound trading of Stock Connect.

At the same time, Mainland investors can conduct manual trades on the Hong Kong Stock Exchange through the southbound trading of Stock Connect under the initiative.

After studying the business, technical and regulatory arrangements and consulting the market, the stock exchanges will develop an implementation proposal. The implementation details and launch date will be announced later.

Chief Executive John Lee said: “The measure announced by the regulators of the two places today signifies another breakthrough of Stock Connect, enriching the existing trading channels and enhancing trading efficiency.

“The measure will further facilitate the mutual access and concerted development of the two capital markets, strengthening Hong Kong’s position and function as an international financial centre and global offshore renminbi business hub.

“I am most grateful to the Central People’s Government and relevant authorities for their staunch support.”

Financial Secretary Paul Chan pointed out that the new arrangement will play a key role in deepening the interaction and integration of the capital markets.

“It can enhance the certainty and transparency in the transaction price and timing for large-sized securities transactions, thereby allowing investors to manage their asset allocation more efficiently at lower costs, while reducing the potential price impact of relevant transactions through auto-matching.

“The measure would help meet the increasing demand of cross-border block trading from investors in the two places, and is conducive to further enhancing cross-border liquidity.”

Apart from expressing gratitude to the Central People’s Government, the finance chief added: “We will continue to closely liaise with relevant Mainland authorities and institutions to implement the arrangement as soon as possible.”