The long-awaited Shenzhen-Hong Kong Stock Connect will debut in September, likely on Sept. 14 or Sept. 21, the Hong Kong Economic Journal reported Monday, citing sources.
Eligible stocks for the northbound link will include blue chips with a market capitalization of 20 billion yuan (US$3.23 billion) or above and listed either on ChiNext or the Small and Medium-sized Enterprise Board of the Shenzhen Stock Exchange.
Out of the 1,714 stocks listed in Shenzhen, comprising 480 on the main board, 475 on ChiNext and 759 on the SME board, only 500-700 will qualify for the new investment channel, the report said.
It is expected that the stocks that qualify from the secondary boards will mainly be engaged in the internet, new energy, pharmaceutical and healthcare businesses, among other emerging areas.
The southbound link, meanwhile, will cover constituents of the Hang Seng Composite SmallCap Index, with a total daily investment quota of 40 billion yuan, exceeding that of the Shanghai link in the same direction, the report said.
Only professional investors are expected to be allowed to use the Shenzhen-Hong Kong link, given the high volatility of the shares involved.
Translation by Vey Wong
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