Beijing Loosens Market Grip With Second Stock Link Unveiling
- Regulators remove total quotas from exchange trading links
- Shenzhen to Hong Kong connect should take 4 months to start
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China’s regulators took another step toward opening their financial markets on Tuesday, unveiling a second channel for foreign investors to buy the country’s stocks while also lifting restrictions on asset flows.
The China Securities Regulatory Commission said it won’t impose an aggregate quota when trading starts between Shenzhen and Hong Kong exchanges, and the total cap will be removed for the existing Shanghai equivalent. There will be daily limits on net purchases for both programs. The link with Shenzhen should start in about four months, Hong Kong Exchanges & Clearing Ltd. said in a statement.