Dion Global Solutions (Dion) (BSE: 526927), technology partner to the financial services industry, has launched a new module within its NOVA suite to support the Shanghai – Hong Kong Stock Connect scheme.

The  Shanghai  –  Hong Kong  Stock  Connect  programme  is  scheduled to commence  in mid-October this year. For the first time it will allow people in mainland China to invest in foreign stocks  and  allow foreign investors to buy stocks in the Shanghai Stock Exchange through Hong Kong brokerage accounts,  which are  subject to  an annual  quota.  This is a significant step in the development of China’s capital markets and its attempts to integrate further with the global financial community.

The new module in  NOVA, Dion’s clearing and settlement  solution  for both retail and institutional firms,  supports  Shanghai  –  Hong Kong  Stock  Connect and  enables  the processing  of  cross-border trades made by Hong Kong  brokers  on the  Shanghai Stock Exchange.  It addresses the key differences between the two exchanges, including the process changes required to handle multiple market execution feeds and the difference in trade processing times, while resolving the differences in report formats.

Joe Nash, Managing Director – Asia, Dion said:  “Shanghai – Hong Kong Stock Connect programme is a key development for China’s mainland global financial integration. Dion has been working with brokers in Hong Kong for almost 20 years, providing solutions that not only satisfy local requirements, but also enable firms to trade in regional and global markets. Over this time, China has become an economic giant and we see the Stock Connect programme as a significant leap in China’s efforts to expand its domestic equity market.”  Nash continues, “The new NOVA module allows our clients in Hong Kong to process all Shanghai–Hong Kong cross-border trades seamlessly, complying with all the regulatory requirements in both regions.”