A new joint program between the Shanghai Stock Exchange (SSE) and the Hong Kong Stock Exchange (HKEx) will allow non-resident investors to invest in Chinese companies whose shares are listed on the SSE and denominated in Renminbi only, so-called "China A-shares".
 
Investors will be able to invest without having to apply for a status as a Qualified Foreign Institutional Investor (QFII) or Renminbi Qualified Foreign Institutional Investor (RQFII).

As a result the Shanghai-Hong Kong Stock Connect Program will enable Chinese firms to further broaden their investor base, who in return will gain another access opportunity to a desirable asset class.

Simultaneously with the launch of the program in the market on November 17, Clearstream will be able to offer a range of settlement and custody services for China A-shares via its existing Hong Kong link, Citibank, for the first time.

“The Shanghai-Hong Kong Stock Connect program responds to the financial markets’ strong interest in the Chinese currency. As a core market infrastructure provider, it is a cornerstone of Clearstream’s strategy to support our customers’ increasing demand to invest in Asia and to facilitate their business in those markets," said Anne-Pascale Malréchauffé, Head of Network Management at Clearstream 

"With this program we are now able to provide our customers with investment opportunities in China A-shares, a highly sought-after asset class. We have been supporting the internationalisation of the Renminbi since the early days and welcome this program as a further step towards a further development of an international Renminbi market and the Chinese capital markets in general."