Lopsided Link Shows Chinese Rejection of Hong Kong Stocks
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Chinese investors failed to show up for some of Hong Kong’s foremost companies on the first day of the exchange link with the mainland, confounding the predictions of Deutsche Bank AG, BNP Paribas SA and Goldman Sachs Group Inc.
Shares of Tencent Holdings Ltd., HSBC Holdings Plc and Galaxy Entertainment Group Ltd., identified by analysts as likely targets for mainland investors, declined as the cross-border trading program debuted yesterday, sending the Hang Seng Index down 1.2 percent, its biggest drop in almost a month. All three shares extended losses today as Hong Kong stock purchases through the link have so far totaled about 2.6 billion yuan ($419 million), less than 15 percent of the amount bought by foreign investors in Shanghai.