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China and Hong Kong's securities regulators announced a broad suite of new measures on Monday to deepen capital market cooperation, including expanded support for cross-border listings, new offshore yuan-denominated futures products, and a fast-track approval process for exchange-traded funds (ETFs).
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The joint announcement by Hong Kong's Securities and Futures Commission (SFC) and the China Securities Regulatory Commission (CSRC) covers areas spanning fundraising, index cooperation, futures, ETFs, the internationalization of financial institutions, green finance, and the facilitation of professional qualifications.
Under the new framework, the watchdogs will continue to support eligible mainland enterprises raising funds through Hong Kong share sales, while backing eligible Hong Kong-listed companies seeking listings in the mainland. Furthermore, eligible Hong Kong enterprises will be supported in issuing bonds across the border to leverage financing resources in both markets, advancing two-way direct financing.
To strengthen offshore risk management and currency internationalization, the regulators pledged to deepen futures market ties and support the rollout of a wider range of yuan-denominated and settled futures products in Hong Kong.
In a boost to passive investment products, institutions in both markets will be encouraged to launch more ETFs oriented toward "China's modern industrial system". This will be accompanied by a new fast-track registration mechanism specifically designed for conventional equity ETFs. The measures also encourage index providers to launch more benchmarks based on Chinese assets to raise their international profile.
On the sustainability front, the SFC and CSRC plan to promote pilot programs for listed companies in both jurisdictions to disclose climate-related transition plans, a move aimed at jointly advancing the development of green finance.
The regulators also emphasized risk monitoring, pledging to enhance information-sharing mechanisms and strengthen the supervision of cross-border intermediaries to promote sound and compliant operations.
The SFC and CSRC said the comprehensive cooperation framework reflects a shared commitment to high-quality market development. The steps are designed to consolidate Hong Kong’s status as an international financial center, support the development of first-class investment banks, and further bolster the global influence of China's capital markets.
