China Backs New Shenzhen-Hong Kong Stock Connect On January 5, Chinese Premier Li Keqiang backed a stock link between Shenzhen and Hong Kong that, it is being proposed, should be established along the same lines as the recently-established Shanghai-Hong Kong Stock Connect (SHKSC). Launched in November last year, the SHKSC is a mutual market access program that allows, for the first time, Mainland investors to trade stocks listed on the Hong Kong Stock Exchange (SEHK) directly through the Shanghai Stock Exchange (SSE), and for Hong Kong and overseas investors to trade stocks listed on the SSE directly through the SEHK. Situated in the Pearl River Delta region in Guangdong province and close to Hong Kong, Shenzhen is being seen as the next logical place from which to build greater links between stock exchanges on the Mainland and Hong Kong. It would also support the recently approved Guangdong free trade zone. During a recent visit to the Chinese city, Li confirmed that a Shenzhen-Hong Kong Stock Connect should be next, while Hong Kongs Chief Executive CY Leung subsequently said that he will keep liaising with the Chinese authorities about its launch. Speaking to reporters ahead of an Executive Council meeting in Hong Kong on January 6, Leung said that Hong Kong continues to play a vital role in the countrys monetary reforms and added that the scheme would benefit both Hong Kong and the Mainlands financial development.
Posted on: Thu, 08 Jan 2015 06:30:59 +0000