Stock Connect southbound trading to include yuan counter in July 2027: regulator

Hong Kong is aiming to include yuan counter trading in the Stock Connect southbound trading in July next year, the city’s securities watchdog said as it unveiled a strategic action plan to promote the high-quality development of the capital markets.

The Securities and Futures Commission also plans to launch REIT Connect for real estate investment trusts and consult the market on streamlining prospectus disclosure requirements in the first half of 2027, chief executive Julia Leung Fung-yee said.

The current prospectus framework contains substantial overlaps between statutory disclosure requirements and the exchange’s listing rules, which makes prospectuses lengthy and complex, Leung said, adding that the SFC wants to consolidate them to reduce duplication and improve efficiency.

“Our objective is not less disclosure, but better disclosure: clearer, more focused and more useful to investors, while making transactions easier and more cost-effective,” she said.

Leung also vowed to deal seriously with all companies and intermediaries involved in market misconduct, as the watchdog continues to see signs of potential manipulation by some listed companies to create false demand during public offerings.

Since the end of last year, the regulator has rigorously scrutinized the quality of listing application documents and set clear expectations regarding sponsors’ allocation of human resources, she noted.

Although documents continue to be returned, improvements in staffing were seen, Leung said.

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