Live from BLB Asia Desk: Shenzhen-Hong Kong Stock-Trading Link to Open on December 5th

After a long wait is finally ready to debut the Shenzhen-Hong Kong Stock Connect, special trade link that unites the stock exchanges in Shenzhen and Hong Kong; the official opening is scheduled for December 5th, when more than 800 Chinese companies listed in Shenzhen Stock Exchange will open up to foreign investors. In fact, the opening of the Shenzhen-Hong Kong Stock Connect will allow foreign investors to invest in the Shenzhen market through the Hong Kong Stock Exchange; Similarly, Chinese investors will be able to start dealing securities traded on the Hong Kong Stock Exchange. The connection between Shenzhen and Hong Kong stock exchanges follows the previous "links" between Hong Kong and Shanghai Stock exchanges, which opened in late 2014. Compared to the Shanghai Stock Exchange, dominated by large companies owned by the State, the Shenzhen stock market will be characterized by the high number of companies operating in the new economy (Shenzhen is Huawei and Tencent home, for example), which according to the financial analysts may have a higher degree of profitability and faster growth compared to of the State Owned Companies titles. Although there is not an overall limit to the amount of money that can be invested by the new trading connections, the daily limit for incoming flows in Shenzhen will be 13 billion yuan ($ 1.88 billion USD); for the inflows to Hong Kong the limit will be equal to 10.5 billion yuan. Thanks to the connection active from December 5th, foreign investors can buy and trade stocks of 881 companies listed on the Shenzhen Stock Exchange, as investors from Mainland China will sale or purchase securities from 417 listed companies on the Hong Kong Stock Exchange.

For more information: asiandesk@blblex.it