SHANGHAI :
Shenzhen-Hong Kong Stock Link Volume Exceeded USD603.1 Billion in Two Years
Tang Shihua
DATE:  Dec 07 2018
/ SOURCE:  yicai


(Yicai Global) Dec. 7 -- The Shenzhen-Hong Kong stock connect program has facilitated CNY4.2 trillion (USD603.1 billion) worth of trade in the past two years. 


On Dec. 5, the program's two-year anniversary, the total volume of the scheme reached the record high, while most of the cash flows went from Hong Kong to Shenzhen, data from the Shenzhen Stock Exchange show.The program was launched in 2016.


China is stepping up its efforts to open up its financial sector to the world, with stock and bond connect programs allowing global investors to access the capital markets. 


Northbound trading has been particularly active since global index provider MSCI added the weighting of Chinese stocks in its widely tracked indexes on May 31.


Northbound trade from Hong Kong to Shenzhen reached CNY266.84 billion (USD38.7 billion). Southbound trade totaled CNY156.5 billion, resulting in a balance of CNY110.3 billion flowing into the Shenzhen market. 


Global investors have been increasingly interested in Shenzhen-listed stocks, particularly in small-cap growth stocks, the data show.


In terms of stocks that international investors held a larger than 10 percent stake of, some four out of five were classified as small-cap growth stocks. Stakes that were more than 5 percent but less than 10 percent were likely to also be in these small firms' equities that are functioning in the growth space. 


Editor: Emmi Laine 

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