Launch Date for the HK-Shenzhen Stock Market Link is Placed on Hold
The launch date of the landmark Hong Kong Shenzhen stock market link is currently placed on hold for technical reasons, which place China’s pledge at risk to have the program up and running before the year ends. Global funds and investors are expecting regulators to announce the launch date since May for the Shenzhen trading link that is said to compliment a program that connects Hong Kong with Shanghai.
If the delay will push beyond August it will risk pushing the Shenzhen project into next year and sill cause a setback to Chinese regulators that have been gunning for the project since 2015. This would also delay the inclusion of China’s A shares into the global benchmark indices since its one of the key criteria for inclusion is a greater access to the Chinese stock markets. Experts say that there is still a window to announce the date of the launch for the program before the year ends but the window is closing fast and differences are not making it easier to participants to be prepared in time.
The State Administration of Foreign Exchange the currency regulator of China and China Securities Regulatory Commission the stock market watchdog still needs to agree on how the securities will be tradable using the link up and how to allocate the existing cross market investment quotas once the program is initiated. And for international investors the Shenzhen stock exchange will be the portal to the new China economy.