Shenzhen Stock Exchange in Shenzhen, south China's Guangdong Province Photo: Xinhua

 
Shenzhen-Hong Kong Stock Connect celebrates its 4th anniversary on Monday, with both stock exchanges in Shenzhen and Hong Kong growing more than 35-fold and 26-fold in turnover respectively, over the past four years. 

The turnover of Shenzhen-Hong Kong Stock Connect reached 23.11 trillion yuan ($3.54 trillion), among which, Shenzhen Connect has reached 18.93 trillion yuan with the average daily turnover up 3508.63 percent from 1.541 billion yuan from the first month of operation to 55.609 billion yuan based on last month's figures. The daily turnover of Hong Kong Stock Connect has increased 2668.06 percent reaching 12.567 billion yuan 

The continued progress of mainland capital markets comes as the government moves ahead with financial market reform. According to an article published by Yi Huiman, the Chairman of the China Securities Regulatory Commission, China will implement registration-based IPOs underpinned by comprehensive regulatory reform. The country will also improve its delisting system and establish multiple delisting channels, while supporting the entry of long-term capital into local markets. 

In recent years both the Hong Kong and Shenzhen stock exchanges have undertaken reforms improving transparency and accessibility. Reforms include welcoming companies with different structures successfully list, including technology giants with dual class or multiple class shareholding structure, biotech firms with negative profitability performance, and innovative companies seeking a secondary listing that are currently listed in the US or UK.

Global Times