Hong Kong-Shenzhen stock connect next, says Li Keqiang
A Shenzhen-Hong Kong stocks through-train scheme is on the cards, Premier Li Keqiang said in Shenzhen yesterday.
A Shenzhen-Hong Kong stocks through-train scheme is on the cards, Premier Li Keqiang said in Shenzhen yesterday.
Li is the highest-ranking official to hint at a cross-border stock trading arrangement involving Shenzhen, a development widely anticipated in both markets since November's launch of the Shanghai-Hong Kong Stock Connect scheme.
"A stock connect between Shenzhen and Hong Kong should be next," Shenzhen media quoted Li as saying on the second day of a visit to the city.
It was Li who announced the through-train scheme between Hong Kong and Shanghai in April. Hong Kong and international investors can now trade up to 13 billion yuan (HK$16.4 billion) a day in Shanghai listed A shares, while mainland investors can trade up to 10.5 billion yuan a day in Hong Kong stocks.
"Shenzhen has three major roles to play," Li said. "It needs to continue to act as the laboratory for the country's opening-up policy; it needs to introduce more innovation; as well as set a good example for other cities."
Bringing in Shenzhen into the mix would be the most logical next step to encourage cross-border trading and the use of the yuan as an investment currency
Christopher Cheung Wah-fung, the legislator representing the financial services sector, said Li's comment would boost the market.