A speech delivered by Gui Minjie, Chairman of the Governors of the Shanghai Stock Exchange (SSE), at the opening ceremony for the Shanghai-Hong Kong Stock Connect program.
Respected Party Chief Han Zheng, Chairman Xiao Gang, and Mayor Yang Xiong, all the leaders and guests, ladies and gentlemen, and all the friends,
Welcome to the trading floor of the SSE to witness the launch of the program of the Shanghai-Hong Kong Stock Connect, and share the joy at this exciting moment.
Two years ago, senior managers of the SSE and Hong Kong Exchanges and Clearing Limited (HKEx) discussed the feasibility of stock trading on each other’s market by use of information technology means, and agreed on the framework in light of the principles of closed trading, settlement in RMB, respecting trading habits of investors, and launch of pilot program based on risk control. This discussion marked the start for the development of the Shanghai-Hong Kong Stock Connect program. Later, the SSE completed a series of preparatory efforts such as project assessment, formulation of rules, technology development and market mobilization thanks to the careful guidance and strong support of the China Securities Regulatory Commission (CSRC) and the People's Bank of China.
Today, the result of the two years’ efforts comes out. As a participant and a witness, I am very much excited. Why could such a significant opening-up measure be smoothly introduced? I think the reasons behind it are the good timing, the geographical convenience and the wide support.
The 18th CPC National Congress put forward the major deployment on deepening reform and opening-up in all respects. The 3rd Plenary Session of the 18th CPC Central Committee specified the tasks of promoting the two-way opening-up of the capital market and the free convertibility of RMB capital accounts. Coincidently, the construction of the Shanghai Free Trade Zone (SFTZ) is also being propelled. All this gives a direction for the building of the Shanghai-Hong Kong Stock Connect program. This is what I call the good timing.
The SSE and HKEx have long kept close relationship with each other, with frequent visits at all levels. Besides, the two markets, sharing the same time zone, are familiar with and exert influences on each other’s rules, cultures, and habits. All this has formed a solid foundation for the cooperation in the program of Shanghai-Hong Kong Stock Connect. We are of the same origin and share the same ideas, with geographical convenience for mutual cooperation.
The Shanghai-Hong Kong Stock Connect, after being put forward, was highly noticed by the State Council and received strong support and guidance from relevant state departments and Shanghai municipality. It saw active responses from and participation of a wide range of institutions in the securities industry. The market participants agreed on the program and were eager to see the launch of the program. We’d like to extend our gratitude and respect to all of them as the successful launch of the program owes much to their support.
The Shanghai-Hong Kong Stock Connect program, part of China’s opening-up strategy, is an upgraded version of the new round of high-level two-way opening-up of China’s capital market. The program also marks a key step of the SSE towards the goal of internationalization. However, such a little step cannot meet the requirements of the country and the people. We believe this move will trigger great possibilities. The SSE will build itself into a world-class exchange as it will continuously spare no efforts in moving forward on the correct road.
I wish the Shanghai-Hong Kong Stock Connect program could bring us fortune and opportunities, and connect our hearts for a brighter future.
Thank you!