China opens door to global equity investors

The Hong Kong-Shenzhen stock link got a tepid response on its first day. But there is reason to believe investors will see opportunities in China's answer to Silicon Valley.
HKEx chief executive Charles Li launches the second stock connect for Hong Kong
HKEx chief executive Charles Li launches the second stock connect for Hong Kong

China’s stock markets recorded a new milestone on Monday with the launch of a trading link between Hong Kong and Shenzhen an initiative that leaves the mainland equity market fully open and offers a gateway to invest in some of China’s fastest-growing industries.

But enthusiasm for the link between the Hong Kong and Shenzhen bourses, home to about 1,700 and 1,800 companies respectively, is notably cooler than for the tie-up between Hong Kong and Shanghai two years ago.

In fact, stock indices in Hong Kong and Shenzhen fell 0.4% and 1.2% respectively on launch day, having been largely flat since the programme was announced in...

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