UK insurer Prudential makes it to Shenzhen Stock Connect scheme, becoming eligible for Chinese investors
- Inclusion in Hang Seng Composite Index and Stock Connect a ‘significant milestone’, insurer’s chief financial officer says
- Inclusion of foreign firms in Stock Connect schemes to provide a shot in the arm for Hong Kong market, which is suffering from a new listings dry spell, broker says
British insurer Prudential was added to a major index on the Hong Kong stock exchange, which qualifies it for inclusion in a transborder investment scheme available to mainland Chinese investors.
Prudential, headquartered in London but listed in London and Hong Kong, joined the Hang Seng Composite Index on Monday. That qualified it for inclusion in the Hong Kong-Shenzhen Stock Connect, enabling mainland Chinese investors to trade its shares via the Hong Kong exchange.
Prudential’s share price in Hong Kong rose 0.3 per cent to HK$81.4 on Monday after rising by as much as 3 per cent in intraday trading amid a falling market – the Hang Seng Index ended the day 1.2 per cent lower.
Still, Prudential’s inclusion in the composite index and the Stock Connect was a “significant milestone,” said James Turner, the insurer’s chief financial officer.
“We are delighted to offer investors in the Chinese mainland an opportunity to be part of our growth journey,” Turner said in a statement. “We aim to achieve long-term double-digit growth in embedded value per share, driven by our diverse sources of growth across Asia and Africa, and supported by our leading positions in high-growth markets.”