China approves trading link for Shenzhen and Hong Kong stocks
China’s central government has approved plans to link trading between the Shenzhen stock exchange and the Hong Kong market, it said Tuesday, paving the way for the long-awaited reform.
The Hong Kong stock exchange said it expected preparations for the launch of the mechanism to be finished in four months’ time, but that a start date would be subject to regulatory approval.
China launched a landmark “stock connect” between the bourses of Shanghai and its special administrative region of Hong Kong in late 2014, opening up its closeted share market to the outside world and giving foreign investors access to Chinese companies not quoted elsewhere.
Mainland China’s second stock exchange, in the southern city of Shenzhen, was due to follow last year, but the launch was delayed by a market rout. Read More