Update | Shenzhen-Hong Kong Stock Connect strengthens city’s ‘super-connector’ role, says Chief Executive CY Leung
HKEX chief executive Charles Li Xiaojia says new cross-border trading scheme marks another milestone for mutual market access
The new share trading link between Shenzhen and Hong Kong is being heralded as a milestone that will strengthen Hong Kong’s role as a “super-connector” between China and the world – and the local bourses say there may be more connect schemes to come.
But the fanfare surrounding the launch is yet to translate into all-round success for the scheme, which saw muted trading during its Monday debut, using up only 21 per cent of its daily northbound quota.
When the Shanghai-Hong Kong Stock Connect launched in November 2014, the daily quota of northbound stocks was used up within hours of its opening.
The new Shenzhen connect also failed to bolster the Hang Seng Index, which slipped 0.26 per cent on Monday due to volatility in the overseas markets.
The share trading scheme, which links China’s southern most stock exchange to Hong Kong’s bourse, kicked off with a grand ceremony on Monday morning, attended by nearly 600 guests including government officials, regulators and top executives from the exchange.
Hong Kong’s Chief Executive Leung Chun-ying said the new connect would bring Shenzhen and Hong Kong closer and allow international investors to buy Shenzhen stocks.