Date
11 December 2017
UBS chief China strategist Gao Ting said a total of 505 stocks are likely to be included in the stock trading link. Photo: HKEJ
UBS chief China strategist Gao Ting said a total of 505 stocks are likely to be included in the stock trading link. Photo: HKEJ

Shenzhen-HK Stock Connect details out in two months: UBS

Chinese authorities are expected to reveal details of the much-awaited Shenzhen-Hong Kong Stock Connect within two months should it have to be launched by the end of the year, UBS chief China strategist Gao Ting said.

A total of 505 stocks could be included in the stock trading link, including constituents of the Shenzhen Composite Index and companies dual-listed in Shenzhen and Hong Kong, the Hong Kong Economic Journal quoted Gao as saying.

This will expand the number of stocks that mainland investors can trade in through the cross-border link to 218, representing an additional 5 percent market capitalization.

As such, the new scheme could hardly give a boost to the overall stock market in Hong Kong.

Stocks in the sports, film and entertainment industries, among other emerging sectors, are likely to attract interest from mainland investors, Gao said.

An announcement before the rebalancing of the MSCI indexes in June may help soothe concerns over the liquidity of A shares, giving them of a greater chance of being added to the basket that may in turn lead to as much as US$2.2 billion of funds flowing into mainland China, he added.

[Chinese version中文版]

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