CICC(SH:601995) Xin Hua Wang·2025-08-12 05:54Core Viewpoint - The approval of the trading calendar optimization for the Shanghai-Hong Kong Stock Connect and Shenzhen-Hong Kong Stock Connect is a significant step towards enhancing the interconnectivity of the capital markets between mainland China and Hong Kong, promoting long-term stability and healthy development of both markets [1][4][7]. Group 1: Trading Calendar Optimization - The trading calendar optimization allows for joint trading days between the Shanghai, Shenzhen, and Hong Kong stock exchanges, addressing the issue of non-trading days due to differing holiday schedules [1][4]. - The optimization is expected to reduce the number of non-trading days by approximately half, enhancing trading efficiency for investors [4][5]. - The annual average increase in trading days is projected to be 9 for southbound trading and 5 for northbound trading, improving the coverage of trading days significantly [5]. Group 2: Market Impact - As of June 2023, the Shanghai-Hong Kong Stock Connect held A-shares worth 2.55 trillion yuan and the Shenzhen-Hong Kong Stock Connect held Hong Kong stocks worth 1.91 trillion yuan, indicating their importance in the market [2]. - The optimization is anticipated to lead to a net inflow of approximately 32 billion yuan for southbound trading and 60 billion yuan for northbound trading, reflecting a positive trend in capital movement [5][6]. - The changes are expected to enhance the synchronization of trading between the two markets, providing greater convenience for cross-border investors [6][9]. Group 3: Regulatory and Institutional Support - The China Securities Regulatory Commission (CSRC) and the Hong Kong Securities and Futures Commission (SFC) have collaborated to develop the optimization plan based on extensive feedback from market participants [4][7]. - Financial institutions are closely monitoring the new rules and guidelines related to the additional trading days, ensuring effective risk management measures are in place [7][8]. - The optimization reflects a progressive regulatory approach that aims to meet the evolving needs of domestic and international investors [7][10].