Shenzhen Link Offers Reprieve to Hong Kong’s Small Caps
- Link will give mainland investors first access to small caps
- Smaller companies at lowest versus large peers since 2009
HKEX's Li: Stock Connect Links World to China
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Hong Kong’s small-cap stocks may be about to shake off their underdog status.
The companies will outperform larger peers on their inclusion in the newly-approved exchange link with Shenzhen, according to Erwin Sanft, head of China strategy at Macquarie Group Ltd. The Hang Seng Composite Small Cap Index has declined 6.6 percent this year and dropped to its lowest level versus a gauge of the biggest companies in seven years on Aug. 10.