BEIJING, June 18 (Xinhua) -- Shanghai and Shenzhen bourses released on June 14 amended Stock Connect business rules to enlarge the scope of eligible exchange-traded funds (ETFs), reported Xinhua Finance.
Effective from June 14, the revised rules of Shanghai Stock Exchange (SSE) and Shenzhen Stock Exchange (SZSE) lower the thresholds of eligible ETFs under the Shanghai-Hong Kong and Shenzhen-Hong Kong Stock Connect programs.
For inclusion into the ETFs eligible for northbound trading, the amended rules adjust down the minimum requirement over related ETFs' average daily underlying assets in past six months from 1.5 billion yuan to 500 million yuan.
Requirement over the weighted proportion of SSE- and SZSE-listed stocks in related target indexes' component stocks tracked by the eligible ETFs is changed to no less than 60 percent and the same is required for the minimum weighted proportion of eligible northbound stocks in related target indexes' component stocks tracked by the eligible ETFs.
For southbound trading, the revised rules require eligible ETFs to have no less than 550 million Hong Kong dollars of average daily underlying assets in past six months, down much from the past threshold of 1.7 billion Hong Kong dollars.
Requirements over the minimum weighted proportions of stocks listed on the Stock Exchange of Hong Kong or eligible southbound stocks in related target indexes' component stocks tracked by the eligible ETFs are both adjusted to 60 percent.
After the rule revision, the first date of review for adjusting the eligible ETFs under the Stock Connect schemes was June 17, the report said. (Edited by Duan Jing with Xinhua Silk Road, duanjing@xinhua.org)
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