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January 14, 2017

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Shenzhen-HK stock link running well

THE Shenzhen-Hong Kong Stock Connect has been operating smoothly and steadily since its launch a month ago and trading is expected to pick up despite the underwhelming response, Wang Yixuan, director of Shenzhen Stock Exchange’s Hong Kong subsidiary, said yesterday.

The average daily trading volume during the connect’s first four weeks totaled around HK$2 billion (US$258 million), according to the Hong Kong stock exchange.

“When the time is ripe, the Shenzhen Stock Exchange will include exchange-traded funds in the link to enhance investment options,” Wang said.

He added that irregular market volatility will be monitored as well as risks involved in cross-border capital outflows during trading.

The trading connect, launched on December 5, allows international investors to trade 881 Shenzhen-listed tech-heavy stocks, while investors on the Chinese mainland can trade 417 Hong Kong stocks.




 

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