CSRC gears up for stock link

An investor checks stock prices at a securities brokerage in Fuyang, Anhui province. Lu Qijian / for China Daily

Hang Seng Index rises to eight-month high on speculation start date soon to be announced

Securities regulators of the Chinese mainland and Hong Kong are working closely with Shenzhen Stock Exchange and Hong Kong Exchanges and Clearing Ltd for the launch of the long-anticipated Shenzhen-Hong Kong Stock Connect program.

Deng Ge, a spokesman of the China Securities Regulatory Commission, said on Friday that the commission has set up a special working group to lead and prepare for the stocks trading link.

"When relevant regulations and technical preparations are ready, the Shenzhen-Hong Kong Stock Connect will be launched this year," said Deng, without giving an exact date.

The special working group, headed by CSRC Vice-Chairman Fang Xinghai, is responsible for coordinating efforts among various departments within the commission and relevant government bodies and between the mainland and Hong Kong regulators, according to financial magazine Caixin on Thursday.

The stocks link is "imminent", Hong Kong Exchanges and Clearing Ltd Chief Executive Officer Charles Li told CNBC on Thursday.

Li said the link is vital to bringing more tradable products to a wider marketplace in the future.

Premier Li Keqiang said in March that the country would strive to launch the Shenzhen-Hong Kong Stock Connect this year.

The stock connect is a cross-border investment program modeled after the Shanghai-Hong Kong Stock Connect, which was launched in November 2014 and which allows mainland investors to buy Hong Kong stocks, and vice versa.

On Friday, the Hang Seng Index advanced 0.83 percent to 22,766.9, an eight-month high on speculation that the start date of the trading link with Shenzhen will soon be announced.

The Shanghai Composite Index closed 1.6 percent higher at 3,050.7 points on Friday. The Shenzhen Component Index rose 1.32 percent, while the ChiNext gauge of small-cap startup companies added 1 percent.

The CSRC also said on Friday that it is seeking public advice from Aug 12 to 27 on revising the regulations on guaranteed funds.

Deng said revisions to the regulations are meant to better protect the interests of investors, because fund management companies shoulder joint liability.

Deng said the amendments include controlling the scale of the guaranteed funds, strengthening regulations on fund managers and perfecting risk control indicators.

There are 151 guaranteed funds in China with the net value totaling 330 billion yuan ($49.7 billion), according to data from the CSRC.