By Jiahui Huang

China's securities regulator released a series of measures to boost trading with Hong Kong, the country's latest move to shore up investor confidence after recent stock-market volatility.

The China Securities Regulatory Commission said late Friday that it will support leading Chinese companies seeking to list in Hong Kong. Other measures include optimizing the mutual recognition of funds between China and Hong Kong.

Seventy two companies have completed the registration for initial public offerings in Hong Kong after new overseas listing registration rules took effect early last year, the CSRC said.

The regulator also said it will relax standards for eligible exchange-traded-fund products under the stock connects between Hong Kong and the Shanghai and Shenzhen exchanges. The platform allows two-way trading between the cities' stock exchanges. The CSRC will also support yuan stock trading and include real-estate investment trusts on the two trading links.

The Shanghai and Shenzhen stock exchanges released a draft rule shortly after the CSRC statement. The exchanges proposed lower ETF requirements for their respective trading links with Hong Kong and a reduction in the ETF index weighting requirement.

The new regulation is expected to be enacted in about three months. Public feedback on the proposal began Friday, the stock exchanges said.

The easing measures come a month after CSRC Chairman Wu Qing met with Hong Kong Securities and Futures Commission leaders.

China has experienced an outflow of foreign investment in equities in recent years as the world's second-largest economy grapples with slowing growth, a property-sector downturn and weak consumer sentiment. The CSI 300 index of some of China's largest listed companies has lagged behind regional stock markets with a 3.2% gain this year after it slid more than 11% in 2023.

Beijing released new listing standards and a new stock-market guideline last week. The benchmark Shanghai Composite Index has been hovering above the key 3000 level after a rebound that began in February.

Write to Jiahui Huang at

(END) Dow Jones Newswires

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