The Shanghai-London Stock Connect program is slated to kick off in December, and the investment threshold for retail investors is set at a minimum of 3 million yuan (436,065 U.S. dollars), as reported by The China Securities Journal on Thursday.
Chinese securities firms are proactively preparing their new businesses around the program, and Chinese regulators have indicated that they are currently conducting investors' education seminars concerning the program.
The Shanghai Stock Exchange will initially test the systems, functions and countermeasures on emergencies about the program from Oct. 27.
The final testing for the Shanghai-London Stock Connect will be conducted from Dec. 1 to Dec. 2. Thus, it is possible that the program could start in December this year, according to The China Securities Journal.
The threshold for retail investors is set at no less than 3 million yuan (436,065 U.S. dollars) in their accounts for 20 trading days before their applications.
Apart from this threshold, qualified investors are also supposed to pass the risk preference assessments.
Chinese securities analysts suggested that the threshold of 3 million yuan (436,065 U.S. dollars) was not rigid and may be adjusted according to changes in the stock market.
The market value of enterprises which have issued Chinese Depository Receipts (CDRs) should be more than 2 million yuan (290,710 U.S. dollars), and these companies need to have been listed on the London Stock Exchange for over three years.
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