Hong Kong stocks

Hong Kong is attracted to mainland capital, not its equities

Financial institutions in Hong Kong are offered an opportunity to invest in mainland stocks but the impact on the A-share market will be limited, experts say.
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A Chinese investor checks stock market prices at a brokerage firm in Huaibei City (Imaginechina)</div>
<div style="text-align: left;"> A Chinese investor checks stock market prices at a brokerage firm in Huaibei City (Imaginechina)</div>

Six years ago, a widely anticipated policy that was to allow Chinese mainland investors to invest in Hong Kong stocks sent the city's share prices soaring sky high. But the opening of a reverse route is likely to receive the cold shoulder from cross-border investors.  

Allowing Hong Kong residents to trade A-shares won't have much impact on the domestic equity markets, according to Chen Li, head of China equity strategy at UBS. “It only provides alternative investment options such as pharmaceutical companies and companies engaged in Chinese traditional medicine, which are rare in the Hong Kong stock market,” he said.  

However, China’s...

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