Investor Presentaiton
China Connect | A Transformational Breakthrough
Stock Connect is a transformational breakthrough for global investors to access the China A-shares market
Shanghai Northbound
Shenzhen Northbound
SSE
~568 stocks
~90% Market Cap
~80% ADT
SZSE
~880 stocks
~74% Market Cap
~68% ADT
SEHK Subsidiary
Daily Quota
RMB13bn (~US$2bn)
SEHK Subsidiary
RMB13bn (~US$2bn)
Why is it a transformational breakthrough?
• Available to everyone from day one (e.g. retail investors, institutions, hedge
funds, overseas investors)
No approval or license required (e.g. no approval from CSRC, SAFE, PBOC,
SFC)
Scalable model and designed to be multi-assets and multi-markets (e.g.
ability to extend to Shenzhen Exchange, equity derivatives, ETF, etc.)
• Broader impacts (IPO, index, RMB internationalization)
-
World's Largest Stock Exchanges – Market Capitalizations (US$ trillion)
Mainland China
Hong Kong
SEHK Members
Mainland China
19.2
Hong Kong
13.4
SEHK Members
Hong Kong or
Overseas Investors
"Home Market" rules or laws apply to the
extent possible; price discovery remains
in the home market.
Hong Kong or
Overseas Investors
"Home Market" rules or laws apply to the
extent possible; price discovery remains
in the home market.
2
Shenzhen
3.9
Shanghai
5.7
7.2
6.5
4.9
HK
3.8
3.4
2
1.8
1.6
NYSE
Hong
Kong,
Shanghai,
Shenzhen
NASDAQ London
NYSE
Japan
OMX Stock Exchange Euronext
Exchange Group -
Group Tokyo
TMX
Group
Deutsche BSE India
Börse
Source: World Federation of Stock Exchanges as of June 2015
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