Chinese broker Haitong Securities has joined trading technology vendor Fidessa's global connectivity network in a move intended to open up access to China's markets.
Haitong Securities provides access to the Shanghai Stock Exchange via its subsidiary, Shanghai Stock Communication Company (STOCOM), enabling institutional market participants around the world to access both the Shanghai and Shenzhen stock exchanges in mainland China.
Fidessa has passed conformance testing with STOCOM, opening the way for inbound trading via Haitong of A-shares and B-shares in these markets. A-shares are listed in renminbi and available to domestic and qualified foreign institutional investors (QFIIs), while B-shares are listed in US$ for international firms.
There are currently 2,400 buy-side market participants and 600 brokers on the Fidessa network, but only those with a valid QFII allocation may benefit from the improved access to Chinese markets via Haitong Securities. Few new QFII allocations have been granted by the Chinese Securities Regulatory Commission in recent years, severely limiting foreign access to A-shares.
The Fidessa network covers some 150 markets across Europe, Asia Pacific and the Americas, and carries executed order flow worth around US$800 billion in total every month.
“By joining the network we are able to offer access to this community and provide members with the local expertise that will enhance the outcome of their strategies for the Chinese market. At the same time we are able to extend our own international business,” said Hiroki Mayizato, general manager, international business department, Haitong Securities.
A FIX order routing link into China was established by NYSE Technologies, the technology subsidiary of exchange group NYSE Euronext, via STOCOM in May this year.