Photo taken on Feb. 17, 2023 shows a view of the China Securities Regulatory Commission (CSRC) in Beijing, capital of China. [Photo/Xinhua]

The China Securities Regulatory Commission (CSRC) and the Hong Kong Securities and Futures Commission (SFC) jointly announced the introduction of block trading, or manual trades, under the mutual market access program on Friday.

Under Stock Connect, offshore investors will be able to conduct block trades on the Shanghai Stock Exchange and the Shenzhen Stock Exchange through the northbound trading link, while mainland investors will be able to conduct manual trades on the Stock Exchange of Hong Kong Ltd. through the southbound trading link.

The initiative will further enhance the Stock Connect arrangements, make available more trading mechanisms, improve trading efficiency, and promote the mutual development of both capital markets, said the announcement.

The CSRC and the SFC will supervise the respective exchanges and clearing houses on both sides in studying the business, technical, and regulatory arrangements to introduce block trading, conduct market consultation as appropriate, and develop an implementation proposal.

Data showed that net capital inflow under the northbound trading of the Stock Connect programs between the Shanghai and Hong Kong exchanges and the Shenzhen and Hong Kong exchanges totaled 1.02 trillion yuan (about 142.5 billion U.S. dollars) and over 930 billion yuan, respectively, by the end of July.