Meituan Dianping and Xiaomi shares jump as they become available to mainland traders on Stock Connect
- Excitement has been building on mainland that Meituan Dianping, Xiaomi would become available on the Stock Connect
- Analysts expect both stocks will benefit from the development
Mainland Chinese investors have long grumbled about not having access to some of their biggest home-grown tech superstars, which usually choose to list elsewhere. That’s changing – and smartphone maker Xiaomi and online food delivery-to-ticketing firm Meituan Dianping were the first to benefit.
For the first time starting Monday, select Hong Kong-listed stocks that have so-called weighted voting rights – giving founders and others more control over a company – are available on the Stock Connect to mainland Chinese traders.
Both stocks jumped at the opening of trading Monday. Smartphone maker Xiaomi rose 1.4 per cent to HK$9.19, while Meituan Dianping gained 3.5 per cent to HK$93.70.
Xiaomi and Meituan Dianping were the first such stocks added to the trading link, according to a Shanghai Stock Exchange notice on Friday after market close.
“Both Xiaomi and Meituan are household names to the average retail investor in China. Granting these investors access to buy such stocks will definitely benefit the share prices,” said Kevin Leung, executive director of investment strategy at brokerage Haitong International.