Date
24 January 2017
Mainland regulators have yet to agree on how many securities will be tradable via the link between the Shenzhen exchange and its counterpart in Hong Kong. Photo: Bloomberg
Mainland regulators have yet to agree on how many securities will be tradable via the link between the Shenzhen exchange and its counterpart in Hong Kong. Photo: Bloomberg

Launch announcement for Shenzhen-HK stock market link delayed

The announcement of the launch date for the Shenzhen-Hong Kong stock market link is on hold for technical reasons, putting at risk China’s pledge to have the scheme ready by year-end, Reuters reported, citing three unnamed sources.

Global funds and other industry participants expected regulators to announce last month a launch date for the trading link, which will complement an existing scheme connecting Hong Kong with Shanghai.

Beijing has said the Shenzhen-Hong Kong link will be launched in the second half of the year, but a delay beyond August risks pushing the project into next year, the report said.

It would also potentially delay the inclusion of China’s A-shares in global benchmark indices such as the MSCI Emerging Markets Index, since one of the key criteria for inclusion is greater access to the mainland’s stock markets.

China’s currency regulator, the State Administration of Foreign Exchange, and its stock market watchdog, the China Securities Regulatory Commission, have yet to agree on how many securities will be tradable via the link and how to allocate existing cross-border investment quotas once the scheme is in place, the sources said.

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