China Watchdog Sees Shenzhen Link Feasible in 2016, RTHK Reports

A start to the stock-trading link between Hong Kong and Shenzhen in the second half of this year is feasible, Radio Television Hong Kong reported, citing a senior official at China’s securities regulator.

The China Securities Regulatory Commission will also consider expanding the scope of investment for the Hong Kong-Shanghai stock connect when it announces the Shenzhen program, CSRC Vice-Chairman Fang Xinghai said, according to the news service.

The exchange link will enable offshore investors to buy yuan-denominated shares listed on the Shenzhen stock exchange, the trading venue for many of the nation’s technology and high-growth shares.

An official announcement on when the Shenzhen connect will start is being closely watched by investors in part because policy makers have given few details since the $5 trillion stock-market selloff started in China in June.

The cross-border program is seen as a milestone in China’s effort to reform its financial markets and boost use of the yuan. MSCI Inc. has said that giving foreigners greater access to Shenzhen is key to including the nation’s stocks in global benchmark indexes.

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