China Securities Regulatory Commission and Securities and Futures Commissions of Hong Kong jointly announced on Friday, the Shenzhen-Hong Kong stock connect mechanism will be launched on Dec 5.
Premier Li Keqiang made an affirmative disclosure in an executive meeting of the State Council, China's Cabinet, in Beijing in mid-August that the preparation work of the Shenzhen-Hong Kong stock connect had been almost finished.
The announcement said the business rules, operation schemes and supervisory and regulatory arrangement of transaction settlement, limit management and the other practices have been settled, the technology preparation is finished and the emergency plans are also done.
The two securities watchdog bodies on the Chinese mainland and Hong Kong vow to take effective actions to crack down upon all kinds of illegal practices to maintain the normal order of the new mechanism and protect the investors' legal rights and interests.
CSRC published the widely-anticipated detailed rules of the mechanism shortly afterwards. Since then the market's expectation for the official launching of the reform has heated up. Analysts believe the stock market in Hong Kong will gain from this reform next year, because of the appraisement divergence between the stock markets in Shenzhen and Hong Kong.
As the Hong Kong stocks' value is underrated compared with the other main markets, they faces less downward risk.