Chinese and Global Financial Integration through Stock Connect A Legal Analysis

Unlike the traditional market segmentation model, a new mechanism – Stock Connect, namely an exchange tie-up, integrates China with international developed markets such as Hong Kong, London and Switzerland. First launched in 2014 in Shanghai and then extended to Shenzhen with Hong Kong in 2016, additional new links such as Shanghai-London and China-Switzerland were established in 2019 and 2022, respectively. It has drawn wider attention for giving mutual market access to these exchanges and allowing Chinese and international investors to trade securities in each other’s markets through their local brokers and clearing houses for the first time. This mechanism can become the new normal in future global financial integration. By examining this cross-border scheme from a regulatory perspective via a three-tiered analytical framework (investors, issuers and regulators), this book will be the first law monograph to study the profound implications of Stock Connect to local and global financial markets and the legal impediments to its implementation.