China Investors Go Missing From Hong Kong Stock-Trading Link
- Mainland buying of city's shares has fallen since April surge
- Valuation gaps of dual-listed stocks are widest in two months
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One year after China allowed some of its citizens to directly trade Hong Kong shares for the first time, enthusiasm has turned to apathy.
Since a flurry of buying by mainland investors in April spurred the biggest monthly rally in six years for the Hang Seng Composite Index, average daily purchases of the city’s stocks via an exchange link with Shanghai have tumbled 89 percent. Four of the five most popular targets through the connect are down more than 40 percent from April peaks, while the valuation discount on Hong Kong shares relative to Shanghai is even wider.