The Chairman of the Securities and Futures Commission (SFC) Tim Lui, said the real-name registrations system for the Southbound Hong Kong Trading Link will be launched this quarter. Full implementation is expected to occur in the first half of this year, but there is no set schedule yet.

In regards to improvements towards the IPO approval process by HKEX, Lui said SFC will communicate with HKEX on the issue of shortening the approval process. Both parties agreed to continue to collaborate together in order to achieve better progress. Lui will also discuss about paperless IPO applications and relevant documentation about the application process will be released.

Following the implementation of the real-name registration system by the Hong Kong Stock Connect, mainland investors will need to register their legal names and other personal information before purchasing H shares. This will allow SFC to better monitor share transactions. However, some mainland investors may seek financing or equity pledge financing and push up share prices by making purchases through the Hong Kong stock market. Therefore, implementation of the real-name registration system will put pressure on the share prices of third and fourth line stocks.