Hong Kong Exchanges and Clearing Limited (HKEX) will launch a new platform based on smart-contracts in order to remove the inconvenience for foreign investors who trade local stocks via its Stock Connect scheme, Reuters has learned.
Subscribe to our Telegram channel to stay up to date on the latest crypto and blockchain news.
International asset managers have had to create manual processes for trading Chinese stocks via Stock Connect - a cross-boundary investment channel that connects the Shanghai Stock Exchange and the Hong Kong Stock Exchange - which made it difficult for many traders and brokers to enter the local market. Gerard Smith, HKEX Head of Post Trade Product Development, says the new platform focused on standardizing the post-trade process "should eliminate inefficiencies."
With the help of smart contracts, HKEX wants to synchronize information across market traders in real-time. The official launch date of the new trading platform remains unknown.
In the meantime, Hong Kong's authorities agree that all cryptocurrency trading platforms should be regulated in order to legally operate. So far, this requirement only applied to platforms trading securities.
The CEO of the Hong Kong Securities and Futures Commission (SFC), Ashley Alder, said the regulator had been applying a selective legal framework to crypto trading platforms, resulting in some of them operating beyond the control of regulators. Several popular crypto exchanges are currently operating from Hong Kong, including Huobi, OKEx and BitMEX.
Access more than 50 of the world's financial markets directly from your EXANTE account – including NASDAQ, London Stock Exchange and Tokyo Stock Exchange.