Foreign funds will now be on a par with domestic funds.
The total value of trading over the two Mainland-Hong Kong Stock Connect schemes since the launch of the Shanghai link three years ago has surpassed $1trn.
Shanghai-Hong Kong-Shenzhen-themed mutual funds are getting strong inflows as mainland investors worry about RMB risk and the property market.
On December 5, the Shenzhen stock exchange will link with Hong Kong’s, which is already connected to Shanghai’s bourse. The tri-city set up will create the largest stock market in the world by volume.
About two dozen onshore fund managers, including China’s largest — Tianhong Asset Management — have been granted access to invest through the upcoming Shenzhen-Hong Kong Stock Connect.
ETF trading on the Shenzhen-Hong Kong Stock Connect still has many unknowns, but the hope is that the passive offerings will encourage mainland investors to look beyond money market products, said Jackie Choy, Morningstar director of ETF research for Asia.
China’s number three man visited Hong Kong and failed to mention the Shenzehen stock connect scheme, but Credit Suisse believes it is still launching this year.
The app provides stock prices along with real-time trading turnover data, quota balances, index tracking and corporate disclosures made to the exchange. It will also cover information about Shenzhen-Hong Kong Stock Connect when it launches. “This new account is part of our broader outreach efforts in mainland China, designed to help educate the market about […]