After a slow first week,
several key changes could improve the performance of the
long-awaited Shanghai-Hong Kong Stock Connect.
Stock Connect comprises what is known as the
northbound link, through which Hong Kong and overseas investors
can buy and hold A shares listed on the Shanghai stock
exchange, and the southbound link, through which investors in
mainland China can buy and hold shares listed on the Hong Kong
Following its launch on November 17, the
cross-border trading scheme filled 36% of its northbound quota
and six percent of its southbound quota last week, according to
Reorient Research. Concerns over potential initial glitches and
China’s sluggish economy have been blamed for
the tepid response.
"We are looking at two entirely different markets:
there’s an onshore market, which...