BOC completes first clearing for Shanghai-HK stock connect

Bank of China (BOC), one of the country's top four banks, completed the first clearing for trade in the Shanghai-Hong Kong stock connect program on Tuesday.

BOC has been designated as the sole clearing bank for the Shanghai-Hong Kong stock connect program. BOC (Hong Kong) is the clearing bank in Hong Kong, while the BOC Shanghai bank serves as the clearing bank on the Chinese mainland.

The BOC completed clearing Monday's northbound trading volume in the amount of 12.08 billion yuan (1.97 billion U.S. dollars) for Hong Kong Securities Clearing Company Limited with a southbound trading turnover of 407 million yuan for China Securities Depository and Clearing Corporation Limited, the bank said in a statement.

The pilot program gives investors mutual market access, an attempt to open up the capital market on the Chinese mainland. Hong Kong investors can buy shares in 568 Shanghai-listed companies while mainland buyers can access 266 Hong Kong stocks.

The program will operate between the Shanghai Stock Exchange, the Stock Exchange of Hong Kong Limited, China Securities Depository and Clearing Corporation Limited and Hong Kong Securities Clearing Company Limited.