Hong Kong Bourse’s Perfect Rally at Risk as Trading Spike Ends

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Hong Kong Exchanges & Clearing Ltd. is defying gravity.

The bourse operator surged more than 50 percent in the first two weeks of April when China’s mainland investors maxed out a quota for buying Hong Kong stocks for the first time and turnover on the exchange jumped to a record. Since then, HKEx has barely budged as the value of shares traded more than halved and cross-border inflows slowed, as the attached chart shows.