On Apr. 3, 2025, SSE and SZSE published the finalized implementation rules on quantitative trading, also known as the program trading management measures.
Published answers to reporters' questions, and highlighted key points of the measures.
The measures will be effective from Jul. 7, 2025.
On the same day, HKEX issued circular to inform China connect exchange participants (CCEPs) and trade-through exchange participants (TTEPs) of the measures above.
CCEPs and TTEPs can verify their own systems in the end-to-end testing environment on an optional basis from Apr. 22, 2025 to May 16, 2025 to ensure readiness.
On Apr. 3, 2025, SZSE drafted guidelines re stock program trading report, #249640.
On Jun. 7, SSE drafted rules on quantitative securities trading.
SSE drafted implementation rules on the quantitative trading in the securities market.
The implementation rules complement and connect the relevant contents of the Regulations on the administration of quantitative trading in securities market (trial).
Follows CHI CSRC May 2024 issued rules re quantitative trading supervision, #208202.
Implementation Rules
Provides for the reporting content, reporting timeframe, change reporting and other requirements for quantitative trading investors; reporting responsibilities for clients.
Clarifies compliance risk control responsibilities of institutions/members re abnormal quantitative quantitative trading behaviors such as abnormal instantaneous declaration rate, frequent instantaneous order withdrawal, and frequent lifting and suppression.
Specifies testing requirements of quantitative trading systems; stipulates member return monitoring, trading unit management, and host hosting resource management.
Specifies differentiated management requirements for high-frequency trading management such as additional reporting and increased transaction fees are proposed.
Shanghai-HK stock connect investors shall comply with the implementation rules.
SSE conduct on-site/off-site inspections of entities engages in quantitative trading.
Effectiveness
Consultation closes on Jun. 14, 2024.
Jun. 7, 2024 SZSE Consultation
On Jun. 7, 2024, SZSE also drafted implementation rules on quantitative trading.
Proposal is the same as SSE's above, applicable to Shenzhen-Hong Kong stock connect.
Consultation closes on Jun. 14, 2024.
Document dated Jun. 7, 2024, received from SZSE Jun. 14, summarized on Jun. 18.
Apr. 3, 2025 Finalized Measures
On Apr. 3, 2025, SSE and SZSE published the finalized implementation rules on quantitative trading, also known as the program trading management measures.
Published answers to reporters' questions, and highlighted key points of the measures.
The measures will be effective from Jul. 7, 2025.
On the same day, HKEX issued circular to inform China connect exchange participants (CCEPs) and trade-through exchange participants (TTEPs) of the measures above.
CCEPs and TTEPs can verify their own systems in the end-to-end testing environment on an optional basis from Apr. 22, 2025 to May 16, 2025 to ensure readiness.
On Apr. 3, 2025, SZSE drafted guidelines re stock program trading report, #249640.