According to the Memorandum of Understanding entered into between the SFC and the CSRC on 17 October 2014 on strengthening cross-boundary regulatory and enforcement cooperation under Shanghai Connect, the SFC and the CSRC have agreed to:

• provide for the sharing of information and data of risks and alerts about potential or suspected wrongdoing in either the Hong Kong or Shanghai stock market under Shanghai Connect;
• establish a commitment and a process for joint investigations;
• ensure complementary enforcement action can be taken where there is wrong doing in both jurisdictions; and
• make sure enforcement actions in both jurisdictions operate to protect the investing public of both the Mainland and Hong Kong, including actions that may be necessary to provide financial redress or compensation to affected investors.

It is expected that the scope of the existing co-operation arrangement between the SFC and the CSRC will be extended to include Shenzhen Connect upon the launch of Shenzhen Connect.