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China Exchange Opening Puts Tencent In Shanghai Accounts

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Chinese investors will get unprecedented access to Macau casino stocks and Tencent Holdings Ltd. through an agreement to link Shanghai and Hong Kong markets that analysts say will shrink valuation gaps.

Under a plan announced yesterday, wealthy individuals will be allowed to buy Hong Kong equities through the Shanghai exchange, broadening their investment options from a limited number of funds. The change will boost brand-name Chinese companies whose shares trade only in Hong Kong, while giving arbitragers more scope to narrow price differences between dual-listed stocks, said Bank Julius Baer & Co. and Invesco Ltd.