Stock Connect Adds Bank of East Asia, Removes Sunac Services

Edgen Stock

·Mar 09 2026, 01:22

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Key Takeaways

The Shenzhen Stock Exchange has implemented its latest adjustments to the list of securities eligible for the Southbound Stock Connect program, impacting which Hong Kong-listed stocks are accessible to mainland Chinese investors. The changes, effective March 9, 2026, have created divergent outcomes for the included and excluded companies.

Key Additions: Bank of East Asia (00023.HK) and Montage Technology (06809.HK) are now eligible for purchase by mainland investors, potentially increasing their liquidity.
Notable Removals: Shui On Land (00272.HK) and Sunac Services (01516.HK) have been dropped from the list, risking a reduction in their trading volume and investor base.
Immediate Market Reaction: Newly included stocks saw mixed performance, with biotechnology firm CARSGEN-B (02171.HK) gaining nearly 15% while others fluctuated.

Inclusions Spur Divergent Price Action

Effective March 9, 2026, the Shenzhen Stock Exchange has added a new slate of Hong Kong-listed companies to its Southbound Stock Connect program, opening them up to a vast pool of mainland Chinese capital. Prominent additions include the Bank of East Asia (00023.HK) and semiconductor firm Montage Technology (06809.HK). Inclusion in the program is typically a bullish catalyst, as it can significantly boost a stock's liquidity and trading volume. The immediate market reaction was varied, underscoring company-specific factors. Biotechnology firm CARSGEN-B (02171.HK) advanced 15.0%, and XUNCE (03317.HK) climbed 15.0%, demonstrating strong investor appetite.

Exclusions Raise Liquidity and Price Concerns

Conversely, several companies were removed from the eligibility list, cutting them off from direct investment by mainland market participants. Real estate firms Shui On Land (00272.HK) and Sunac Services (01516.HK) were among the most notable exclusions. This change can lead to reduced liquidity and potential selling pressure as mainland funds may need to adjust their holdings. Shui On Land's shares reacted negatively to the news, declining 1.54%. Other removed companies included PAX Global (00327.HK) and NetDragon (00777.HK), who now face the challenge of a smaller addressable investor base.