Stock Connect expansion holds low appeal for investors

The expansion will boost inflows to Hong Kong and mainland China stock markets, but the real game changer will be when mainland investors can invest in secondary-listed Chinese companies in Hong Kong.

A version of this story was first published by our sister publication, AsianInvestor.

Institutional investors are not impressed by Chinese regulators’ recent move to largely expand the number of eligible stocks under a China-Hong Kong stock trading link.

The remarks came after Hong Kong’s Securities and Futures Commission SFC and the China Securities Regulatory Commission CSRC jointly announced in December the expansion of stocks eligible for trading under the eight-year-old Mainland-Hong Kong Stock Connect, which will come into effect in about three months.

“I think it looks good on paper and I'm definitely in support of the stock exchanges and regulators between...

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