Ex­change: Linkup to bol­ster HK role in fi­nance

China Daily (USA) - - CHINA - Cai Xiao con­trib­uted to this story. Con­tact the writ­ers at huy­ongqi@chi­nadaily.com.cn

The con­nec­tion of the three ex­changes will help more do­mes­tic and in­ter­na­tional in­vestors use the Hong Kong mar­ket and in turn help China’s open­ing up of its whole cap­i­tal mar­ket, said Li Quan, CEO of Guok­ing (HK) Se­cu­ri­ties and Fu­tures.

At the State Coun­cil meet­ing, Li said, “Ini­ti­at­ing the Shen­zhen-Hong Kong Stock Con­nect, based on the suc­cess­ful pi­lot pro­gram of the Shang­hai-Hong Kong con­nect, marks an­other steady step toward build­ing a law reg­u­lated cap­i­tal mar­ket with in­ter­na­tional fea­tures and ren­ders pos­i­tive sig­nif­i­cance in­many ar­eas.”

The pre­mier also said the launch of the new con­nect would help in­vestors to bet­ter share the fruits of eco­nomic de­vel­op­ment on the Chi­nese main­land. In Hong Kong, it will help deepen the fi­nan­cial co­op­er­a­tion be­tween them and con­sol­i­date and boost Hong Kong’s po­si­tion as an in­ter­na­tional fi­nan­cial cen­ter, he said.

The new con­nect is mod­eled af­ter the Shang­haiHong Kong con­nect by which main­land in­vestors could buy Hong Kong stocks, and vice versa.

Trade vol­ume of the Shen­zhen Stock Ex­change reached 401 bil­lion yuan on Tues­day, mak­ing the over­all trade vol­ume of the main­land’s stock mar­ket more than 800 bil­lion yuan.

The con­nect is ex­pected to be launched be­fore late De­cem­ber, ac­cord­ing to Charles Li of Hong Kong Ex­change and Clear­ing. It will ben­e­fit Hong Kong’s stocks, which are un­der­val­ued, com­pared with those in Shen­zhen, said Den­nis Huang, se­nior real es­tate and fi­nan­cial com­men­ta­tor in Hong Kong.

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