Market rehearsals for the Shanghai-Hong Kong Stock Connect took place over the weekend. The test practiced scenarios in which the Stock Connect will stop working because of its rules being breached.
In Saturday’s test, one of the northbound stocks was simulated to have its aggregate foreign shareholding reaching 28%, and further buy orders of that stock were not accepted until the shareholding fell below 26%.
Sunday’s rehearsal simulated a scenario where the northbound daily quota was exceeded, and no further buy orders were accepted for the remainder of the trading session.
It also allowed participants the chance to familiarise themselves with the trading features of northbound trading, test their operations and know what to do when the shutters come down as thresholds are crossed.
The two-day rehearsal allowed participants to determine system readiness for the programme. A total of 97 exchange participants and 108 clearing participants were involved. It followed a connectivity test the previous weekend.
Northbound and southbound trading processes were verified, as well as clearing and settlement cycles in Hong Kong and Shanghai.
The next rehearsal is scheduled for 13 September.