According to a joint announcement published by the CSRC and the SFC, the two commissions will actively enhance cross-boundary regulatory and enforcement cooperation. Each of them will take all necessary measures to establish, in the interests of investor protection, an effective regime under the Shanghai-Hong Kong Stock Connect to respond to all misconduct in either or both markets on a timely basis. The CSRC and the SFC will improve the current bilateral agreement to strengthen enforcement cooperation in respect of the following areas:

• Referral and information exchange mechanisms concerning improper activities

• Investigatory cooperation in relation to cross boundary illegal activities including disclosure of false or misleading information, insider dealing and market manipulation

• Bilateral enforcement exchange and training

• Enhancement of general standards of cross-boundary enforcement cooperation

The joint announcement further notes that the two commissions will establish a dedicated liaison mechanism for Shanghai-Hong Kong Stock Connect to deal with any issues that may be encountered during the pilot program which may require joint resolution.