White Collar | Trading rules a problem for Shanghai-Hong Kong connect scheme
More internationally friendly regulations will help make mainland market more attractive
The Shanghai-Hong Kong stock through train, although slightly delayed, finally departed the station yesterday.
A significant point in the scheme is that many overseas individuals and fund houses are now able to access the mainland market through Hong Kong under this plan.
White Collar in the past few months has received letters from readers around the world asking about the scheme, particularly the launch date and details of its operations.
This shows the scheme has good marketing appeal to the world and has prompted investors to pay attention to the Shanghai stock market.
This would be an important step for the city to turn into an international financial centre in 2020 as the government envisioned.
But many issues still exist to discourage international investors from entering the mainland market because many trading and settlement rules in the country are different from those overseas.
One issue is the 30 per cent foreign ownership limit to ban total foreign ownership of a mainland company.