Investors Shun China Stock Link on Ownership Concern, Group Says
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Institutional investors are shying away from the Shanghai-Hong Kong stock link due to uncertainty about ownership rights and complicated trading procedures, according to an industry body.
Most long-term asset managers aren’t going to buy mainland shares through the program in the near term, because investors and regulators aren’t comfortable with their ability to enforce ownership of the equities, Mark Austen, chief executive officer of the Asia Securities Industry & Financial Markets Association, said today in Hong Kong. Requirements to deliver shares to a broker before selling them are also sapping interest, he said.