Traders Want Stock Fixes Ahead of China Joining Global Indexes
- Daily trading quota is one issue market wants to see resolved
- Yuan liquidity, investor ID plan, holidays also raised
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Traders are lobbying Hong Kong Exchanges & Clearing Ltd. for changes to the cross-border stock links with mainland China ahead of the country’s shares joining key MSCI Inc. benchmarks.
Chinese-listed companies will be added to gauges including the MSCI Emerging Markets Index in June, a move that could spur as much as $17 billion of flows into the world’s second-biggest equity market. But traders in Hong Kong said the two stock connects, which link HKEX with bourses in Shanghai and Shenzhen, may struggle unless certain issues -- including daily trading limits and details of an incoming investor identity system -- are addressed.