Regulators to allow block trading under Stock Connect
Market regulators in Hong Kong and the mainland announced on Friday that they have reached a consensus on the introduction of block trading, under the current mutual market access programme. The move means offshore investors can conduct block trades on the Shanghai and Shenzhen exchanges, while mainland investors will be able to trade large-sized securities in the local bourse.  In a statement, the SAR government said it welcomes the news announced jointly by the Securities and Futures Commission and the China Securities Regulatory Commission. Chief Executive John Lee described the latest arrangement as a breakthrough, saying it enriches the existing trading channels and enhances trading efficiency.  “The measure will further facilitate the mutual access and concerted development of the two capital markets, strengthening Hong Kong's position and function as an international financial centre and global offshore Renminbi business hub,” he said. Financial Secretary Paul Chan, meanwhile, said the move is important in deepening the interaction and integration of the capital markets. “The measure would help meet the increasing demand of cross-border block trading from investors in the two places, and is conducive to further enhancing cross-border liquidity,” Chan noted.  Authorities on both sides will iron out the relevant arrangements and announce implementation details on a later date.