HK regulator aims for 'northbound' China investor ID system by mid-2018

Hong Kong

HONG Kong's securities regulator plans to implement a real-time investor identification system around mid-2018 for "northbound" trading under the Stock Connect programme with China, its chief said, a move aimed at detecting potential misconduct.

"Northbound" trading means foreign investors from Hong Kong buying and selling shares in Shanghai and Shenzhen under the "Connect" scheme, as part of Beijing's efforts to open its markets more widely to foreign investors.

The move to monitor such trading is in line with global efforts to mitigate market volatility through greater transparency, and it comes as China seeks to woo foreign institutions to invest m…