The Securities and Futures Commission is proposing to change the Investor Compensation Regime, raising the compensation limit from HK$150,000 (US$19,165) to HK$500,000 (US$63,885) per investor per default and covering northbound trading under Mainland-Hong Kong Stock Connect.

The regulator is working with the Hong Kong Government on the drafting of legislative amendments and plans to introduce them into LegCo (the legislative council, Hong Kong's rudimentary version of a parliament) in the coming months.

The Stock Connect arrangement is the arrangement between the Stock Exchange Company and the operator of a Stock Connect market that facilitates mutual market access through facilities for routing orders for the sale or purchase of securities and for handling matters relating to those securities. A Stock Connect market is a stock market operated by the Shanghai Stock Exchange or the Shenzhen Stock Exchange.