HKEx shares soar, trading halted, on hint of Shanghai cross-trading deal

A potential cross-trading link-up between Hong Kong Exchanges and Clearing and its Shanghai counterpart boosted the share price of the local bourse yesterday, with investors anticipating a return to the golden days of trading seven years ago.

HKEx suspended trading in its shares at 3.12pm. They last traded up 5.44 per cent at HK$126 after a high of HK$126.40 following a report that HKEx had reached an agreement on a system link-up with the Shanghai exchange.

Such a scheme would allow mainland investors to trade Hong Kong stocks through mainland brokers, with the Shanghai exchange passing orders to HKEx. Hong Kong investors could also trade mainland shares through the same arrangement.

"HKEx has been in discussions with its mainland counterparts regarding the potential establishment of mutual market connectivity initiatives," the exchange said in response to the report, adding that "no agreement has been entered into and there is no assurance that an agreement on mutual market connectivity will be entered into".

It also said it would make a further announcement "when appropriate".

The potential deal also boosted the shares of Hong Kong-listed mainland brokerages.