More Investors Keen on Selling Shares Rather than Placing Orders
For the first time yesterday mainland investors have turned net sellers of Hong Kong stocks using the city’s bourse link after taking 6.1 percent of daily buying quotas during the program’s first week.
The balance for the daily limit for the Hong Kong equity buying using the link have risen above 10.5 billion yuan from 9:33 am to 9:58 am local time which signaled more investors were selling their shares than placing orders. The daily allowance for Shanghai purchases was about 19 percent and was taken up by 10:13 am. According to Hong Kong based asset management director Alex Wong that mainland investors are making profit. The only difference is in the investor behavior wherein Shanghai people exits on highs after policy announcements but in Hong Kong where people are not for the short term.
Quota used by mainland investors to use in Hong King dwindled every day since the establishment of the link in November 17 and some mainland investors didn’t have approvals that were needed to invest offshore and there were not many arbitrage opportunities that were on hand to exploit along with small capital stocks that were favor but were not included in the program.