10 Years of Connect

Key takeaways:

Innovative ideas and infrastructure underpinning Stock Connect have successfully connected China and the world through Hong Kong. The closed-loop fund flow and net clearing and settlement operations not only support prudent risk management, but also improve the efficiency of cross-border transactions.
Partnership between HKEX and a wide range of stakeholders has powered far-reaching progress and enhancements over the past decade, widening channels, opening up opportunities and strengthening market infrastructure.
The impact on market liquidity has been vast, with Stock Connect, in particular, supporting about RMB 177 trillion in two-way equity capital flows.
Stock Connect trading activity so far in 2024 has been particularly strong, with Northbound (RMB 123 billion) and Southbound (HK$38.3 billion) Stock Connect ADT, up 14% and 19% YoY, respectively, compared with the same period in 2023. Southbound flows contributed 16.9% of ADT in the Hong Kong market between Q1 and Q3 2024.
As of the end of September 2024, there are more than 3,300 eligible stocks under Stock Connect, covering nearly 90% of the total market capitalisation and nearly 80% of the trading volume of the Shanghai-Shenzhen-Hong Kong markets.
As of September 2024, there were a total of 225 Northbound-eligible ETFs and 16 Southbound-eligible ETFs in Stock Connect. In Q3 2024, Northbound ETF ADT was RMB1.76 billion, 89 times that of the month of ETF inclusion, and Southbound ETF ADT was HK$2.53 billion, about 12 times that of the month of launch.
Over the past decade, the Connect programmes have continually expanded in scope, including the expansion of eligible securities within Stock Connect, and the rolling out of Bond Connect and Swap Connect.
The Connect programmes have expanded RMB usage in international investment, promoting RMB internationalisation and strengthening Hong Kong's position as an offshore RMB hub.
Looking ahead, HKEX has a key role to play in linking global capital with China’s long-term growth, and connecting Mainland China capital with global diversification opportunities through Hong Kong. Prospects for further Connect enhancements include enriching the product ecosystem, optimising trading, increasing investor engagement, improving liquidity and risk management tools for international investors.

Stock Connect

Stock Connect connects Hong Kong, Shenzhen and Shanghai exchanges. Via Stock Connect, local and international investors may trade selected stocks listed in Shanghai and Shenzhen via Hong Kong, and vice versa.

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Swap Connect

Swap Connect is the world’s first derivatives market access scheme allowing international investors to trade and clear onshore RMB interest rate swaps through Hong Kong.

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Bond Connect

Bond Connect allows international and Mainland China fixed income investors to trade cross-border in their respective markets, facilitating two-way capital flows through Hong Kong.

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10 Years of Connect

Learn more about specific Connect channels

Stock Connect

Swap Connect

Bond Connect