Shanghai Stock Exchange, Implementing Measures for Shanghai-Hong Kong Stock Connect Related Matters (Amended in 2019)

上海证券交易所沪港通业务实施办法 (2019年修订)

November 28, 2019 | BY

Susan Mok

Shanghai-Hong Kong Stock Connect includes stocks with weighted voting rights

Clp Reference: 3700/19.10.18 Promulgated: 2019-10-18 Effective: 2019-10-28
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Issued: October 18, 2019

Effective: October 28, 2019

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Main contents:        Where the stock of a company with a weighted voting rights structure falls within the scope specified in Item (1) or (2), but not Item (3), of Article 55, it shall additionally satisfy the following conditions when first being included as a southbound trading stock under the Shanghai-Hong Kong Stock Connect:

(1)       having been listed on the Hong Kong Stock Exchange for six months and the subsequent 20 Hong Kong stock trading days;

(2)       having a daily average market value of not less than HK$20 billion during the Hong Kong stock trading days in the 183 days before the reference date (inclusive of the reference date);

(3)       having a total Hong Kong stock turnover of not less than HK$6 billion in the 183 days before the reference date (inclusive of the reference date); and

(4)       since the listing, neither the stock issuer nor a weighted voting rights beneficiary having been publicly rebuked or otherwise publicly sanctioned by the Hong Kong Stock Exchange or having triggered the termination of the weighted voting rights due to a violation of Hong Kong Stock Exchange regulations on the corporate governance of companies with weighted voting rights structures, information disclosure or investor protection measure, etc

For the purposes of the preceding paragraph, the term "reference date" means the 19th Hong Kong stock trading day after the lapse of six months from the listing on the Hong Kong Stock Exchange of a company with a weighted voting rights structure; if it fails to satisfy the inclusion condition by the last Hong Kong stock trading day specified in Item (1) of the preceding paragraph, then the reference date shall be the 2nd Hong Kong stock trading day before the subsequent date on which a regular revision of the component stocks on the Hang Seng Composite Index enters into effect (Article 56).

Related legislation: Several Provisions on the Mechanisms to Provide Mutual Trading Access Between the Mainland and Hong Kong Stock Markets and Shanghai Stock Exchange, Listing Rules

Repealed legislation: Circular on revising Articles 23 and 108 of the <Shanghai Stock Exchange, Implementing Measures for Shanghai-Hong Kong Stock Connect Related Matters>

clp reference:3700/19.10.18/SH issued:2019-10-18 effective:2019-10-28

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