Wednesday, 12 November 2014

Hong Kong-Shanghai Connect Trading From Nov 17

In a significant step towards opening China’s capital markets to foreign investment, trading link between Hong Kong and Shanghai will be launched on Monday, November 17.

The so-called Stock Connect trading scheme could boost the average daily value of stock trading in Hong Kong by about 38 percent by 2015 and may ultimately lead to the creation of the world’s third largest stock exchange.

The move had already fueled an unusual rally among China’s largest listed companies, which have long been out of favor and blamed for the market’s doldrums in recent years.

The project will at the same time provide a channel for Chinese savers to start moving some of the $8 trillion of private wealth currently in deposits into overseas stocks.

The announcement comes as China is making a big push to widen the use of the yuan, with Canada and Malaysia becoming the latest addition to a growing list of trading hubs for the currency.

China already operates several cross-border investment schemes but these are restricted to specific firms that must apply for a license to participate.




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