The launch of the Shanghai-Hong Kong Stock Connect next month will not be affected by protests now raging in the city, Hong Kong Exchanges and Clearing Ltd. (00388.HK) chief executive Charles Li said, stressing that the two are unrelated.
Speaking at a news conference on Monday, Li said the market should not relate the timing of the Occupy Central civil disobedience campaign to the launch of the long-awaited stock market initiative, which is expected sometime in October, the Hong Kong Economic Journal reported.
The cross-border stock trading scheme will allow investors in mainland China to buy Hong Kong-listed stocks for the first time, while enabling overseas investors to buy shares on the Shanghai Stock Exchange.
The program is expected to spur arbitrage activities on shares listed on both markets, while opening the doors for the entry of mainland savings and funds into the Hong Kong stock market.
Li said he hopes the pilot scheme would later be expanded to cover the commodities market, the newspaper said.
The London Metal Exchange, now under HKEx, launched its own clearing house LME Clear last week. The next step would be for the metal exchange to launch four Asian commodities contracts which are due to hit the market in December, the report said.
– Contact us at [email protected]