HKEx fears China's algo revamp may hurt Stock Connect

Hong Kong

CHINESE regulators' proposed new regulations for algorithmic traders could threaten the success of Stock Connect, which links the stock markets in Shanghai and Hong Kong, according to Hong Kong Exchanges & Clearing Ltd. The China Securities Regulatory Commission this month ended the consultation period on the new rules, which may include disclosure of computer codes and strategies deployed for trading.

The city's bourse conveyed concerns to the Shanghai exchange asking for more clarity about the planned new automated trading requirements in China, said Calvin Tai, the head of global clearing at HKEx. "Basically all the orders going into the Shanghai Stock Exchange market would be subject to this rule, unless they give us an exemption," Mr Tai told reporters in Hong Kong on Wednesday.