(File photo)

Shanghai-Hong Kong Stock Connect has promoted internationalization of the renminbi (RMB), consolidated Hong Kong's position as an international financial center and contributed to construction of Shanghai international financial center, said a senior official from China's security watchdog.

China Securities Regulatory Commission vice-chairman, Fang Xinghai, said on the mainland regulator’s website Monday that plans were afoot to expand trading quotas and the range of stocks covered by the Shanghai-Hong Kong Stock Connect scheme, to increase cross-border regulatory and law enforcement cooperation and to push forward with the mutual recognition of funds and the establishment of Shenzhen-Hong Kong stock connect scheme

The Shanghai-HK scheme has operated steadily since its launch a year ago on Nov. 17, despite the crisis in the mainland's stock market last summer.

While overseas investors have paid continuous attention to mainland capital market, investors on the mainland are gradually adapted to this cross-border investment system and are in increasing demand to invest in overseas market, said Xu Lei, an investment advisor.

Shanghai stocks have attracted 121 billion yuan (USD 19.73 billion) through this investment channel, about 40 per cent of the 300-billion-yuan aggregate quota, and the investment produced a trade volume of 1.5 trillion yuan, according to the Shanghai Stock Exchange.

Hong Kong stocks have attracted 92.4 billion yuan through the program, about 37 per cent of the 250-billion-yuan annual quota, and the investment produced a trade volume of HKD 742 billion (USD 95.74 billion), according to Hong Kong Exchanges and Clearing Limited (HKEx).

Although the trading turnover is low, Charles Li Xiaojia, CEO of HKEx held the view that the Stock Connect would be better operated in a stable and safe condition at the beginning phase of its operation. Li said that the Stock Connect creates a two-way risky controllable and close operated capital market mode which is supervised by both mainland and Hong Kong. And this mode has been proved to be feasible.

Shanghai and Hong Kong exchanges joined hands to investigate in many financial cases under the scheme, providing better investment environment.