Investor ID plan unveiled for Stock Connect

China_and_Hong-Kong_flagsA plan to issue investor identification numbers for northbound trading in the Stock Connect scheme, which links Hong Kong and mainland China, has been revealed. The Securities and Futures Commission in Hong Kong said it had reached an agreement with the China Securities Regulatory Commission to implement the ID regime for northbound trading in the third quarter of 2018. The Hong Kong Investment Funds Association welcomed the plan, saying, in a statement, that it could “help reduce regulatory arbitrage and enhance regulatory efficiency”. The Asia Securities Industry & Financial Markets Association (ASIFMA), an industry group, said it hoped the scheme would issue ID numbers to fund managers rather than to individual funds. It said the legal entity identifier (LEI) system, a global scheme, could provide the template. “With respect to the ID, we propose the use of LEI in line with global harmonisation, which most foreign institutional investors should be using already in compliance with MiFID II,” said Mark Austen, chief executive of ASIFMA. The second version of the Markets in Financial Instruments Directive (MiFID II) is a wide-ranging piece of European regulation that aims to promote transparency in capital markets. ©2017 funds global asia

Sponsored Profiles

Sponsored feature: Another way of doing things

Nov 05, 2020

Funds Global Asia talks to Calastone’s Leo Chen about the growth of wealth management in Southeast Asia and the emergence of new models.

Sponsored feature: Asset allocators – How do you track your decisions?

Apr 06, 2020

Mark Barry, Head of Asset Allocation at Milestone Group, explores how a simple question can highlight opportunities to automate and streamline your asset allocation investment process.

Sponsored feature: How is DLT changing the global securities services landscape?

Oct 17, 2019

By Jeslyn Tan, global head of product management, securities services, at Deutsche Bank

Sponsored feature: A new base for fund distribution

Oct 16, 2019

To get the most value out of the digitisation of investment fund distribution, a blockchain-based infrastructure is fundamental. By Olivier Portenseigne, Managing Director and Chief Commercial Officer, Fundsquare.

Executive Interviews

Executive interview: Staying agile on the pandemic plan

Nov 05, 2020

Terry Pan, chief executive for Greater China, southeast Asia and Korea at Invesco Asia Pacific, tells us about managing a business during Covid-19, opportunities on the continent and US-China...

Executive interview: Hong Kong: Bridging the ESG gap

Nov 05, 2020

Dr King Lun Au, executive director at the Financial Services Development Council (FSDC) discusses Hong Kong’s “unique” role in developing ESG in the region with Romil Patel.


Roundtable: ‘What’s priced in versus what surprises’

Jan 04, 2021

As we head into 2021, our panel of experts in Singapore pore over the key risks that are not fully priced in, the impact of the incoming Biden administration on Asia and the dominant investment theme that is China. Chaired by Romil Patel.

Hong Kong roundtable: A ‘fragile Goldilocks situation’

Apr 06, 2020

With the global economy at a crossroads, our panel of experts share their thoughts on the market conditions, geopolitical volatility and growth opportunities. Chaired by Romil Patel in Hong Kong.