- Title: HK-Shenzhen stock link to start in days as China opens further
- Date: 18th November 2016
- Summary: SHENZHEN CITY, GUANGDONG PROVINCE, CHINA (NOVEMBER 18, 2016) (REUTERS) ***WARNING CONTAINS FLASH PHOTOGRAPHY*** SHENZHEN STOCK EXCHANGE EXTERIOR STOCKS TICKER ON BUILDING FACADE SHENZHEN STOCK EXCHANGE SIGN ON WALL WITH STATUE OF BULL ON TOP SHENZHEN STOCK EXCHANGE SIGN ON WALL STATUE OF BULL SHENZHEN STOCK EXCHANGE BUILDING VARIOUS OF HONG KONG STOCK EXCHANGES AND CLEARINGS CEO CHARLES LI SPEAKING AT ROADSHOW MEDIA (SOUNDBITE) (English) HONG KONG STOCK EXCHANGES AND CLEARING, CEO, CHARLES LI, SAYING: "We generally think or hope the regulator will give the market some minimum of time for people to get ready. And we think a week is probably a good idea. But in the end the regulators are going to take all factors into consideration." LI SPEAKING TO MEDIA (SOUNDBITE) (English) HONG KONG STOCK EXCHANGES AND CLEARING, CEO, CHARLES LI, SAYING: "Well we are completely ready. It's almost like someone saying 'ready, set, go!' So waiting for that 'go!' But we have told the regulator that we prefer that this is going to be done on a Monday. And we prefer it will be done on a day when we don't have big market events like index rebalancing. We would also like to do this not too close to Christmas. So there's really little uncertainty as to whether or not we are going to go. The issue is really only precisely when and I think the regulators know exactly what they are doing. And we have complete faith in their ability to choose and execute that goal." VARIOUS OF SHENZHEN STOCK EXCHANGE ENTRANCE SHENZHEN SKYLINE CHINA AND SHENZHEN STOCK EXCHANGE FLAGS
- Embargoed: 3rd December 2016 06:51
- Keywords: Hong Kong Shenzhen trading stocks China
- Location: SHENZHEN CITY, GUANGDONG PROVINCE, CHINA
- City: SHENZHEN CITY, GUANGDONG PROVINCE, CHINA
- Country: Hong Kong
- Topics: Economic Events
- Reuters ID: LVA00158Z0C5P
- Aspect Ratio: 16:9
- Story Text:A long-awaited stock trading link between Hong Kong and Shenzhen will go live in coming days, further opening capital markets in the world's second-largest economy to global investors, even as international appetite for Chinese shares may be tepid initially.
The Hong Kong - Shenzhen stocks connect launched its roadshow to drum up support in Mainland China in the southern city of Shenzhen.
The Chief Executive of the Hong Kong Stock Exchanges and Clearing, Charles Li, said the exchange could go live within a week.
"We generally think or hope the regulator will give the market some minimum of time for people to get ready. And we think a week is probably a good idea. But in the end the regulators are going to take all factors into consideration," he said.
The move expands an existing trading link between Hong Kong and Shanghai, allowing foreign investors to trade stocks in Shenzhen, the world's second-busiest exchange, from Hong Kong.
"Well we are completely ready. It's almost like someone saying 'ready, set, go!' So waiting for that 'go!' But we have told the regulator that we prefer that this is going to be done on a Monday. And we prefer it will be done on a day when we don't have big market events like index rebalancing. We would also like to do this not too close to Christmas. So there's really little uncertainty as to whether or not we are going to go. The issue is really only precisely when and I think the regulators know exactly what they are doing. And we have complete faith in their ability to choose and execute that goal," said Li.
With more than 1,800 listed companies that have a combined market capitalization of $3.3 trillion, the Shenzhen stock exchange offers "the largest untapped investment opportunity in the world," according to an HSBC report.
But sky high valuations and wild swings in Chinese stock prices mean investment flows from Hong Kong into its northern neighbour could take time to materialize.
On the other hand, as Chinese retail investors seek to diversify away from their home market and put their funds into assets in a stronger currency.
The Shenzhen Connect had been expected to start more than a year ago, but was put on hold after a slump in the Shenzhen and Shanghai bourses, with stocks diving more than 40 percent and the government implementing a series of measures to prop up markets.
China approved the Shenzhen trading scheme in August.
For Chinese investors facing a weakening economy and currency, investing in mid-size Hong Kong-listed companies may be one way to offset the domestic downturn, investors said. - Copyright Holder: REUTERS
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