Shenzhen exchange explores stock pipeline with Hong Kong - China media
Reuters
Published Aug 27, 2014 05:32
Shenzhen exchange explores stock pipeline with Hong Kong - China media
HONG KONG (Reuters) - The Shenzhen stock exchange has submitted a plan to launch a programme letting it connect to Hong Kong's stock market like one planned for Shanghai, media reports said on Wednesday.
Authorities in the southern Chinese city will promote the launch of a "through train" stock trading system similar to what is being launched between Hong Kong and Shanghai, the official China daily reported, quoting Xiao Zhijia, deputy director-general of Shenzhen's Office of Financial Development Service.
When contacted by Reuters, Shenzhen's office of Financial Development Services did not immediately respond to a request to comment on the article.
The Shenzhen stock exchange, a rival to Shanghai's market, looks to emulate the Nasdaq in the United States by focusing on companies in their early growth stages. It also has some big-name listings, including China Vanke <000002.SZ>, the country's biggest residential property developer.
Authorities expect the landmark stock-connect programme between Shanghai and Hong Kong - another step in China's efforts to open up its markets - will launch in October. Regulators and market participants are racing to test mechanisms to ensure readiness.
While China investors anticipate a wave of institutional money will flow into the mainland's relatively undervalued markets, Hong Kong stock punters are hoping Chinese money will boost trading volumes and lift stocks.
The Shanghai Composite Index rose to eight-month highs last week, and Hong Kong's Hang Seng Index reached a more than six-year high this week as investors hailed the latest development as a catalyst for further market gains.
(Reporting by Grace Li; Writing by Saikat Chatterjee; Editing by Richard Borsuk)
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