Date
18 October 2017
All dressed up but nowhere to go, the Hong Kong-Shanghai Stock Connect may have to wait indefinitely for it formal launch. Photo: HKEJ
All dressed up but nowhere to go, the Hong Kong-Shanghai Stock Connect may have to wait indefinitely for it formal launch. Photo: HKEJ

Beijing using HK protest as an excuse for Stock Connect delay

A landmark cross-border stock trading scheme has its own problems and its failure to launch on Monday had nothing to do with the democracy protests, Ming Pao Daily reported Tuesday.

The so-called Hong Kong-Shanghai Stock Connect is grappling with technical issues and regulatory concerns over potential conflict of interest and sensitive state information, the report said, citing market sources.

Also, Hong Kong and Shanghai are yet to resolve differences relating to market oversight, penalties and taxation.

The two sides operate under different regulatory and tax regimes, the report said.

However, Beijing does not see these issues as potential threats as much as the ongoing pro-democracy protests which continue to block the main access to Hong Kong’s business and financial district, the sources were quoted as saying.

Xu Lin, director of the Finance Department at the National Development and Reform Commission, China’s top economic planner, said questions regarding the delay should be addressed to the securities regulator.

He said the delay might have been caused by technical issues.

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TL/AC/RA

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