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SHKSC Uptake Highest Among HK, Foreign Investors

by Mary Swire, Lowtax.net, Hong Kong
17 December, 2014

The Shanghai-Hong Kong Stock Connect (SHKSC) program has seen a greater uptake from Hong Kong-based and foreign investors than mainland China investors, newly released data shows.

Launched on November 17, 2014, the SHKSC is a mutual market access program that allows, for the first time, Mainland investors to trade stocks listed on the Hong Kong Stock Exchange (SEHK) directly through the Shanghai Stock Exchange (SSE) – known as the Southbound Trading Link – and Hong Kong and overseas investors to trade stocks listed on the SSE directly through the SEHK (through the Northbound Trading Link).

During SHKSC's first 20 trading days to December 12, 2014, the average daily turnover in Northbound trading totaled RMB5.8bn (USD943.4m). In the same period, the average daily turnover in Southbound trading was RMB757m.

Full-day buy turnover value exceeded sell turnover in both directions throughout SHKSC's first four weeks, and 91 out of 97 eligible SEHK market participants have already engaged in Northbound trading, with 547 out of the 568 eligible securities in that direction having been traded.

"The launch of SHKSC has been a great success because it is a very important breakthrough, beginning a new era of the world's last major capital market opening. It also reinforces Hong Kong's position as a leading international financial center," said HKEx Chief Executive Charles Li.

"Since its launch, SHKSC has been running smoothly with complete operational stability, giving both international and Chinese investors convenient and sustainable access," he added. "Like any new market infrastructure, we anticipate utilization will increase gradually as investors gain better understanding of the program and assess the investment opportunities that are available to them for the first time."

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