Beijing has signalled that a long-awaited trading link between Shenzhen stocks and Hong Kong’s market is set to open before the end of the year – roughly two years on from the milestone launch of a link with Shanghai.
The so-called “Connect” will for the first time allow international investors to trade stocks listed in the southern city, home to many more tech and start-up enterprises than Shanghai, which is known for hosting a greater proportion of state-owned enterprises and banks – neither of which are particularly popular with international investors just now.
“Preparatory work related to the Shenzhen-Hong Kong Stock connect is basically completed, and the State Council has approved a ‘Draft Plan for Implementation of the Shenzhen-Hong Kong Stock Connect’,” Premier Li Keqiang said in a statement.