The Hong Kong Securities and Futures Commission and the China Securities Regulatory Commission jointly announced new cooperation measures! Covering ETFs, futures, and green finance.

On August 3, the Hong Kong Securities and Futures Commission (SFC) and the China Securities Regulatory Commission (CSRC) jointly announced a series of new measures to further deepen practical cooperation and closely coordinate development between the two markets. The measures announced cover multiple areas, including listing financing, index collaboration, futures products, exchange-traded funds (ETFs), the internationalization of financial institutions, green finance, and facilitating professional qualifications. This reflects that the regulatory authorities of both regions have established a comprehensive framework for cooperation, jointly promoting the high-quality development of both markets. Both sides believe that these measures will not only help consolidate and enhance Hong Kong's status as an international financial center but also, through regulatory cooperation, drive the establishment of first-class investment banks and investment institutions, promote deeper involvement of both markets in global financial governance and regional regulatory collaboration, and further enhance the international influence of China's capital markets. Specific measures include: Continuing to support eligible domestic companies in listing and financing in Hong Kong, supporting eligible Hong Kong-listed companies to list domestically, and supporting qualified Hong Kong enterprises in issuing bonds in the Mainland, to better utilize the two markets and two types of resources for financing and development; Supporting the two regions' index companies to strengthen cooperation, launching more indices based on Chinese assets, and enhancing the international influence of Chinese indices and assets; Deepening cooperation in the futures markets of both regions, supporting Hong Kong in launching more futures products settled in Renminbi; Supporting institutions in both regions to introduce more ETF products based on the two markets and reflecting the layout of China's modern industrial system, and implementing a fast registration mechanism for conventional stock ETF products; Supporting securities and fund companies with certain strength, standardized operations, and high management levels to legally "go global," orderly expanding international business from Hong Kong as a base to build first-class investment banks and investment institutions; Promoting pilot projects for climate-related transition plan disclosures among listed companies in both regions, and jointly enhancing green finance efforts; Researching and promoting support for professionals in the securities and futures business of Hong Kong banks to apply for relevant qualifications in the Mainland through simplified procedures. On this basis, the Hong Kong SFC and the China SFC will further strengthen regulatory coordination between the two markets and deeply participate in global financial governance, providing a solid guarantee for the stable and healthy operation of both markets. Specific measures include: Continuing to strengthen the cooperation in the regulation of issuance and listing between the two regions, orderly promoting cross-border bilateral direct financing for eligible enterprises, and encouraging complementary advantages and coordinated development between the two markets; Continuing to strengthen cooperation in the regulation of intermediary institutions between the two regions, improving risk monitoring and information-sharing mechanisms, and promoting compliance and sound operations of industry institutions; Deeply participating in global financial governance and regional regulatory cooperation, and jointly promoting the stable and healthy development of regional capital markets. Dr. Tim Chan, Chairman of the Hong Kong SFC, expressed, "I would like to express my heartfelt thanks to the China SFC. The introduction of these new measures fully reflects the results of close cooperation and joint efforts between the two commissions. This series of important measures focuses on core areas and will help enhance the influence and attractiveness of China's capital markets in international financial markets, providing significant support for the further development of Hong Kong's capital market. At the same time, these arrangements clearly outline the development path for the two capital markets to achieve higher levels of connectivity, injecting strong momentum into the continuous deepening of coordinated development between the two regions. Looking ahead, Hong Kong will continue to play an irreplaceable and unique role in the process of building a strong financial nation." Ms. Ashley Leung, Chief Executive Officer of the Hong Kong SFC, stated, "We will continue to work closely with the China SFC, refine the measures, and implement relevant arrangements, with the goal of enhancing the influence and competitiveness of institutions, personnel, and products from the Mainland and Hong Kong within the global financial system, while also providing more opportunities for global investors to share in the achievements of China's development. I and the SFC will also continue to actively promote regional regulatory cooperation to facilitate the integration and sound development of regional markets."