Hong Kong (AsiaNews) – As of today, the Hong Kong stock market has connections with the Shenzhen stock exchange in China (Guangdong). The new connect allows foreign investors to place stocks on the Shenzhen Stock Exchange and at the same time allows Chinese investors to take advantage of the Hong Kong market and the international one.
For several years the Hong Kong Stock Exchange has been connected to the Shanghai. The move today is a further step towards the integration of the Chinese and world markets, taking advantage of Hong Kong's position.
However today’s launch has not produced the desired results. By 11 this morning trading in Shenzhen stood at 1.35 billion yuan; in Hong Kong at 442 million local dollars. The levels are much lower than Shanghai, where there were exchanges for 3.04 billion yuan and Hong Kong exchanges for 1.37 billion dollars.
Several analysts see the connect between Shenzhen and Hong Kong principally of benefit to China investors. Over the past two years the yuan has lost 10% of its value and many Chinese are trying to increase their profits by investing in the Hong Kong Stock Exchange.
Other analysts note that many companies in Shenzhen – which has become a kind of Chinese Silicon Valley - guarantee annual returns of 25% and this could tempt global investors.
