Deals
China Traders Barred From Buying Xiaomi Through Stock Link
- Chinese stock exchanges say they won’t expand access
- Policy reflects regulator aim to protect smaller investors
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China’s stock exchanges said they won’t allow mainland investors to buy shares with weighted-voting rights in Hong Kong, sending Xiaomi Corp. shares slumping.
The bourses will also bar trading in foreign companies and stapled securities via the Hong Kong stock link, according to a statement by the Shanghai Stock Exchange on Saturday, which said many investors don’t understand the risks associated with new products. Xiaomi tumbled as much as 9.6 percent before paring declines to 1.9 percent at the close.