Stock exchanges of Shenzhen, Hong Kong to launch new cross-border share trading link скачать в хорошем качестве

Stock exchanges of Shenzhen, Hong Kong to launch new cross-border share trading link

Starting tomorrow, the Shenzhen Stock Exchange and the Hong Kong Stock Exchange will launch the "Shenzhen-Hong Kong Stock Connect," a mechanism that allows investors in the Mainland and Hong Kong to trade eligible shares listed on each other''s market through their local securities companies. This means that Taiwanese investors will be able to trade stocks on the two exchanges without having to open up an account in China. Analysts think the new development is unlikely to force Taiwan out of the game, despite the low trading volumes on the TaiEx of late. Even though the Taiwan Stock Exchange Corp is not open on the weekend, some investors were still keenly tracking the movements of various stocks in anticipation of the launch of the Shenzhen-Hong Kong Stock Connect tomorrow. For these traders, it will be a new investment channel. TraderNow there are even more mainland company stocks to choose from.In future, foreign investors will be able trade over 800 different kinds of stocks in Shenzhen and Chinese investors can also buy 400 kinds of Hong Kong stocks. Fubon Financial estimates as China’s capital markets gradually liberalize, they will be able to attract more than US$300 billion. The Taiwan Stock Exchange Corp is seeing average daily trading volumes plummet, but analysts think it is too pessimistic to say that the new cross-border share trading link between the two cities will produce a “crowding out” effect. Wu Jin-chauFinancial AnalystIn the short term, this will not have too much of an impact. Taiwan’s stock transaction volumes are already pretty low. Taiwan stocks have relatively low profit margins. If you choose to list in Hong Kong or Shenzhen, the price-earnings ratio is comparatively higher, so that has the effect of even more financing. However, analysts pointed out that for listed companies, trading volumes in Hong Kong and Shenzhen are relatively large and financing is comparatively easy to come by. There are fears that this could encourage even more (Taiwanese companies) to list on the stock exchanges of Hong Kong and Shenzhen.