The Hong Kong Securities and Futures Commission (SFC) and the China Securities Regulatory Commission (CSRC) today jointly announced that they have reached a consensus on the introduction of block trading (manual trades) under Stock Connect.

Block trading provides an alternative trading mechanism to enable market participants to execute large-sized transactions. The introduction of block trading under Stock Connect will enable southbound and northbound investors to participate in the block trading facilities currently available in the Hong Kong and Mainland markets respectively.

The block trading arrangements for Stock Connect will be developed based on the existing operational models and regulations in each market with appropriate adjustments.

“Block trading is an important trading mechanism to achieve best execution of large-sized transactions and minimise the price impact on the market,” said Ms Julia Leung, the SFC’s Chief Executive Officer. “This initiative will enhance the price discovery functions of both markets and encourage more overseas investors to participate in the A-share market through Stock Connect.”

The stock exchanges on both sides will announce the operational details and the official launch date in due course.