China Securities Regulatory Commission released several rules to regulate stock connects between the mainland and Hong Kong markets recently, taking effect from October. According to Deng Ge, spokesperson of the CSRC, these new rules follow suit of the rules implemented on the Shanghai-Hong Kong stock connect in 2014.

Meanwhile, there are three major changes this time. First, the coverage extends to both Shanghai-Hong Kong stock connect and Shenzhen-Hong Kong connect. Second, these new rules reserve more space for optimizing currency exchange mechanism in the future. Last but not least, investors taking part in transactions of the connects will be managed in term of their origins.

"For example, investors entrust Hong Kong brokers to sell and buy shares through Shenzhen-Hong Kong stock connect. Then they should follow rules in Hong Kong, not in the mainland. After these new rules released, CSRC, bourses and clearing institutions will release documents and rules accordingly, to ensure a successful launching of the Shenzhen-Hong Kong stock connect," said Deng Ge.