Brokerages get transaction permission for Shanghai-HK stock connect  

(ECNS) – Although the launch date of the Shanghai-Hong Kong stock connect hasn't been officially announced, many securities brokerages have received transaction permission from the Shanghai Stock Exchange (SSE), the Securities Times reported.

On Monday, big brokerages such as Yinhe Securities, Guangfa Securities, Fangzheng Securities and some smaller firms were given permission to access the scheme.

The stock connect, also called the "through train," would allow international investors to buy stocks in Shanghai while giving mainland investors the chance to buy stocks listed in Hong Kong, paving the way for further opening up of China's capital market and renminbi globalization.

Prior to the stock connect, direct access to mainland shares is limited to domestic investors and qualified foreign institutional investors, but with quotas.

Qualified brokerages finished the first online drill on Oct 11, and are expected to hold a second drill on Oct 18.

Authorities have said that the program is due to launch in October. Amid rumors of a possible postponement, a spokesperson for the Hong Kong Stock Exchange said on Monday that no notice had been received about that.

Some traders say it's likely that the Securities Regulatory Commission would announce the date on Friday and expect the launch time to be Oct 27.