Stock Connect is a mutual market access program linking Hong Kong with mainland China's stock exchanges.
How It Works
- Northbound (Hong Kong → Shanghai/Shenzhen): international investors buy A-shares
- Southbound (Mainland → Hong Kong): Chinese investors buy HK stocks
Why It Matters
Before Stock Connect (2014), international investors couldn't easily access China's $10T+ A-share market. Now billions flow daily through the link.
Daily Quotas
Northbound: ~RMB 52B/day Southbound: ~HKD 42B/day
These limits rarely bind in normal conditions.
Impact on Markets
Northbound flows are closely watched as a signal of foreign sentiment toward China. Large inflows = bullish; large outflows = bearish. Data is published daily by HKEX.