It takes time for the Shanghai-Hong Kong Stock Connect to make a real impact on the markets, Bank of Communications chairman Niu Ximing said.
Speaking at the inauguration of the Hong Kong Shanghai Financial Association (HSFA) on Tuesday, Niu advised market players to refrain from “over-intepreting” the performance of the stock markets on the first day of the cross-border trading scheme.
Monday’s launch of Stock Connect saw Hong Kong investors rushing to snap up shares listed on the Shanghai bourse, but the southbound flow of funds was much less, leaving 83 percent of the 10.5 billion (US$1.7 billion) daily quota unused.
Niu said he is confident about the long-term benefits of the scheme, noting that it opens many opportunities for cooperation between the two sides.
The HSFA, which comprises 14 Shanghai-based financial institutions that have branches in Hong Kong, aims to build a comprehensive service platform for its members and strengthen communication and cooperation between the two cities, particularly in the banking, securities and insurance sectors.
It also seeks to promote investor education programs on the Shanghai-Hong Kong Stock Connect.
Its members include the Hong Kong branches of BoCom, Shanghai Pudong Development Bank, Bank of Shanghai and Shenyin Wanguo (HK) Ltd., among other financial institutions.
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