HK-Shanghai Stock Connect: a slow burner

Brokers see a slow ramp up in Hong Kong-Shanghai Stock Connect volumes and more products and markets eventually added. For now equity managers are trying to keep a lid on costs.

Brokers say they are not expecting an explosion in volumes when the Shanghai-Hong Kong Stock Connect mutual market access programme launches in October but they want to make sure they have the infrastructure in place as China gradually opens up.

Senior equity traders see this latest pilot programme as an incremental move in cranking open mainland China’s capital markets and internationalising the renminbi. More products and markets will continue to be added to the pilot scheme also known as the Through Train.

“We don’t think there will be a big bang large funds won’t come in and trade in big volumes right from the start. It will...

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