Shenzhen Stock Exchange Introduces New Risk Disclosure Scenarios for Certain Hong Kong Stock Connect Securities Effective June 8

Stock News06-05 19:24

The Shenzhen Stock Exchange (SZSE) has issued a notice regarding the revised "Essential Clauses for the Hong Kong Stock Connect Trading Risk Disclosure Statement (2026 Revision)".

This update introduces new risk disclosures concerning specific Hong Kong Stock Connect securities. These risks pertain to scenarios such as companies having a short history since listing, low free-float shares, and the large-scale lifting of sales restrictions on previously locked-up shares.

The revised clauses have been officially released and will take effect starting June 8, 2026.

Member firms are required to fully inform investors of these associated risks in accordance with regulations, while also effectively managing investor suitability and conducting investor education.

The notice outlines several key requirements for market participants.

First, member firms must promptly update their "Hong Kong Stock Connect Trading Risk Disclosure Statement" and thoroughly communicate the relevant risks to investors, in line with the "SZSE Hong Kong Stock Connect Investor Suitability Management Guidelines".

Second, for investors who had already obtained Hong Kong Stock Connect trading permissions before the new Essential Clauses take effect, members must adequately notify them of the revisions to the Risk Disclosure Statement. This notification should be conducted through appropriate channels such as SMS, phone calls, or system prompts, with records kept of these communications.

Finally, the previous "Essential Clauses for the Hong Kong Stock Connect Trading Risk Disclosure Statement (2024 Revision)" issued jointly by the Shenzhen Stock Exchange and China Securities Depository and Clearing Corporation Limited on September 9, 2024, will be simultaneously repealed upon the new version's implementation.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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