Protests raise fears of through train launch delay
Speculation is mounting over the launch of connect programme with authorities refusing to provide a date for cross-border trading scheme
As protests continue for a second week in the city, speculation is mounting over the so-called though train scheme that's set to allow cross-border stock trading with Shanghai by this month as the authorities are still refusing to provide a clear launch date.
With only three weeks left in the month and no fixed date for a launch, some insiders fear Beijing could push the date back in reaction to the protests.
"If there is prejudice from the regulatory body in China, they could deliberately delay the opening. But this is unknown right now," VC Brokerage director Louis Tse Ming-Kwong said yesterday.
China National Tourism Administration, the state-owned tour operator, reacted to the protests last week by barring group tour trips to Hong Kong.
Charles Li Xiaojia, chief executive of the Hong Kong stock exchange, looked to allay fears yesterday when he said in a statement that the protests would not have an effect on the opening of the through train. But when asked for a time-frame, he still could not give a confirmed opening date.
The scheme, which has been widely speculated to open on October 27, the last Monday of the month, will allow investors to conduct cross-border trading of stocks listed in Hong Kong and Shanghai under a total quota of 550 billion yuan (HK$694 billion).
International or Hong Kong investors will be able to trade up to 13 billion yuan of Shanghai-listed A shares a day while mainland investors will be able to trade up to 10.5 billion yuan of Hong Kong shares a day.