Six years ago, a widely anticipated policy that was to allow Chinese mainland investors to invest in Hong Kong stocks sent the city's share prices soaring sky high. But the opening of a reverse route is likely to receive the cold shoulder from cross-border investors.
Allowing Hong Kong residents to trade A-shares won't have much impact on the domestic equity markets, according to Chen Li, head of China equity strategy at UBS. “It only provides alternative investment options such as pharmaceutical companies and companies engaged in Chinese traditional medicine, which are rare in the Hong Kong stock market,” he said.
However, China’s...
¬ Haymarket Media Limited. All rights reserved.
