This week, the Shenzhen-Hong Kong Stock Connect (SZ-HK Stock Connect) formally commenced trading, having been granted approval from the Securities and Futures Commission of Hong Kong and the China Securities Regulatory Commission in August. The SZ-HK Stock Connect allows mutual stock market access to shares listed in the Shenzhen Stock Exchange and The Stock Exchange of Hong Kong. The Shanghai-Hong Kong Stock Connect program, launched in 2014, provided the foundation for the launch, and it has been reported that China will similarly waive capital gains tax for foreign investors trading through the SZ-HK Stock Connect link. It has also been reported that mainland authorities will waive capital gains tax for domestic individual investors trading Hong Kong stocks for three years, however, CGT will still apply to mainland institutional investors, with 20 percent tax on holding Hong Kong stocks. If members have any questions, please contact Kher Sheng Lee, Adam Jacobs-Dean or Adele Rentsch.