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China to launch Shenzhen-HK stock link this year

A TRADING link between Shenzhen and Hong Kong stock markets is expected to receive approval in the first half of this year and to be launched within the year, China’s top securities regulator said today.

“The preparation for the Shenzhen-Hong Kong stock connect is underway with an extensive participation of securities regulators, exchange operators and clearing institutions of the both sides,” Xiao Gang, chairman of China Securities Regulatory Commission, told reporters on the sideline of the annual session of China’s top legislature.

The message echoed with Premier Li Keqiang’s words in the government work report delivered today, saying that China will launch the Shenzhen-Hong Kong connect on a trial basis “at an appropriate time.”

The new link will allow overseas investors to tap in some of China’s most high-growth sectors such as information technology and healthcare which may benefit from China’s ongoing reform after Shanghai-Hong Kong connect provided foreigners with an access to the country’s large-cap blue chips. 




 

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