Shen­zhen-HK stock con­nect to launch soon

China Daily (Canada) - - WORLD - By CHAIHUA in Shen­zhen grace@chi­nadai­lyhk.com

The long-awaited Shen­zhenKong Stock Con­nect is ex­pected to of­fi­cially launch in early Novem­ber, HKEx Chief Ex­ec­u­tive Charles Li Xiao­jia said onWed­nes­day.

The stock link, ap­proved by the State Coun­cil in Au­gust, is the sec­ond direct eq­uity mar­ket trad­ing link be­tweenHong Kong and the main­land af­ter the Shang­hai trad­ing link de­buted in Novem­ber 2014.

Li said prepa­ra­tion of the new stock link is draw­ing to a close and re­lated details will be an­nounced within two days so that bro­kers can get ready. A com­pre­hen­sive in­spec­tion will be ar­ranged in a fewweek­sand “a lucky day” will be se­lected to open the stock con­nect in early Novem­ber.

Stim­u­lated by the news, stocks listed on both the Shen­zhen and Hong Kong ex­changes rose slightly on Wed­nes­day af­ter­noon.

Li noted that the HKEx paid a great deal of attention to pro­tect­ing mi­nor­ity share­holder in­ter­ests, es­pe­cially main­land in­vestors, be­cause they are lack­ing knowl­edge of the Hong Kong mar­ket and have a dif­fer­ent in­vest­ment con­cept.

Ran Ling­hao, QDII port­fo­lio man­ager at Shen­zhen-based Dacheng Fund, said he be­lieves the new­stock con­nect will have a more pos­i­tive re­spond from the mar­ket than the Shang­hai-Hong Kong link be­cause of ren­minbi’s de­pre­ci­a­tion ex­pec­ta­tion and signs of cap­i­tal go­ing to theHongKong mar­ket.

In ad­di­tion, an­other ad­van­tage of the new con­nect is the value of H-share stocks ad­justed a lot af­ter the stock link, Ran added.

Yang De­long, chief econ­o­mist of Shen­zhen-based Qian­hai First Seafront Fund, echoed the value of A-share stocks used to be 50 per­cent higher than H-shares, but the per­cent­age fell to 20 per­cent af­ter the first stock link.

The ra­tio will con­tinue to de­cline af­ter the sec­ond link, he pointed out, but the gap won’t be to­tally re­moved. has first

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