(ECNS) -- The Shenzhen-Hong Kong Stock Connect program will still likely be launched this year despite needing three more months of preparation, Charles Li Xiaojia, chief executive of Hong Kong Exchanges and Clearing Ltd (HKEx), said on Thursday.
In the first six months of 2016, revenues from the existing Shanghai-Hong Kong Stock Connect fell 38 percent year-on-year, to HK$71 million ($9.15 million), according to Li. But he remained optimistic about the upcoming Shenzhen program.
"The Shenzhen-Hong Kong Stock Connect program will certainly be carried out, without the need to be written (into the HKEx's blueprint)," said Li. "No news signals that good news is drawing ever nearer."
In recent months, trading under the Shanghai-Hong Kong Stock Connect program has been heating up. Only 48.3 billion yuan ($7.24 billion) remained of a total quota of 250 billion yuan for Shanghai-listed shares allowed to be traded in Hong Kong, which could be used up in about 30 trading days.
"I believe the quota problem for the Shanghai-Hong Kong Stock Connect will be resolved simultaneously with the announcement of the Shenzhen-Hong Kong Stock Connect program, because nobody wants to see trading suspended all of a sudden because the quota has been used up," he added.
The HKEx said it is technically ready and can launch the new program when regulators give the nod.
Liu Shiyu, the chairman of the China Securities Regulatory Commission, also said in June that the Shenzhen-Hong Kong Stock Connect program would launch within the year.
The HKEx announced its interim results on Wednesday. The group posted HK$5.63 billion in revenues at the end of June 30, down 18 percent from the same period of 2015, and HK $2.99 billion in net profits, down 27 percent year-on-year. It also reported interim dividends of HK$2.21 per share and basic earnings per share of HK$2.47.
The HKEx said its revenues beat market expectations and that performance in the derivatives market was on a par with that of the same period last year.
