Regulators reach consensus on introducing block trading under Stock Connect

The Securities and Futures Commission (SFC) and the China Securities Regulatory Commission (CSRC) have jointly announced their agreement on the implementation of block trading (manual trades) in the context of Stock Connect. This new trading mechanism will provide an alternative option for executing large-sized transactions, benefiting market participants. Under Stock Connect, both southbound and northbound investors will be able to utilize block trading facilities, which are currently available in the Hong Kong and Mainland markets, respectively. The block trading arrangements for Stock Connect will be developed based on existing operational models and regulations in each market, making necessary adjustments as required. Ms Julia Leung, the Chief Executive Officer of the SFC, highlighted the significance of block trading in achieving optimal execution of large-sized transactions while minimizing market price impact. The introduction of block trading is expected to enhance price discovery functions in both markets and incentivize more overseas investors to engage in the A-share market through Stock Connect.



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