On November 17th, the long awaited Shanghai-Hong Kong Stock Connect launched, connecting Mainland China’s capital markets with Hong Kong in a way never seen before.
Before the new investment channel link, individual investors could only participate indirectly in financial securities in the Mainland, such as specific funds and ETFs. The Shanghai-Hong Kong Stock Connect, however, now allows investors to trade securities in a range of listed stocks in each both markets through their respective securities companies. This helps to promote and strengthen the connection between the two markets.
What is the Shanghai-Hong Kong Stock Connect?
Infographic source: Goldman Sachs