Shanghai Bao Pharmaceuticals Co., Ltd.: Inclusion in Stock Connect Program

Key Points of the Announcement

• Shanghai Bao Pharmaceuticals Co., Ltd. (“the Company”, Stock Code: 2659) has announced that its H Shares listed on The Stock Exchange of Hong Kong Limited will be included in the Shanghai-Hong Kong Stock Connect and the Shenzhen-Hong Kong Stock Connect programs.
• The inclusion will take effect from March 9, 2026.
• This development allows eligible investors in the Chinese Mainland to directly invest in the Company’s H Shares through the Shanghai and Shenzhen Stock Exchanges.
• The Company anticipates that this inclusion will help expand its investor base and potentially enhance the trading liquidity of its H Shares.

Details of the Stock Connect Programs

The Shanghai-Hong Kong Stock Connect and Shenzhen-Hong Kong Stock Connect are mutual stock market access mechanisms. These programs link the Shanghai Stock Exchange and Shenzhen Stock Exchange with the Hong Kong Stock Exchange, enabling cross-border investment between the Chinese Mainland and the Hong Kong Special Administrative Region.

Through these mechanisms, eligible investors from both markets can trade shares listed on the other market via their local securities companies or brokers. The inclusion of Shanghai Bao Pharmaceuticals’ H Shares means the Company’s shares will now be directly accessible to a much larger pool of investors, particularly from the Mainland, which could result in increased market activity and liquidity.

Important Information for Shareholders

• Potential Price Sensitivity: The inclusion in the Stock Connect program is a significant milestone for Shanghai Bao Pharmaceuticals. As it enables Mainland investors to participate directly in the Company’s H Share market, there is potential for increased trading volumes and market interest, which could positively influence the share price.
• Expansion of Investor Base: The Board believes that this move will further expand the Company’s investor base, which is strategically important for long-term growth and could attract more institutional and retail investors.
• Liquidity Enhancement: Enhanced trading liquidity is expected due to broader market access, which is generally viewed positively by market participants and can make the shares more attractive to both existing and potential investors.
• Caution Advised: Shareholders and potential investors are advised to exercise caution when dealing in the shares of the Company, as the announcement and subsequent inclusion may result in increased volatility leading up to and following the effective date.

Corporate Governance

The announcement was approved by the Board of Directors, currently comprising both executive and non-executive directors, as well as independent non-executive directors. The Board is chaired by Dr. Liu Yanjun, who also serves as Executive Director. This demonstrates ongoing commitment to transparent governance and regulatory compliance.

Summary

The upcoming inclusion of Shanghai Bao Pharmaceuticals Co., Ltd.’s H Shares in the Shanghai-Hong Kong and Shenzhen-Hong Kong Stock Connect programs is a highly significant event for the Company and its investors. This decision is poised to expand investor access, increase market liquidity, and potentially impact the Company’s share price in a positive manner. Investors should closely monitor further developments and consider the potential implications for their investment strategies.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors should conduct their own research or consult with professional advisers before making any investment decisions. The Company and its directors do not accept responsibility for any loss arising from reliance upon the information provided herein.

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