Hong Kong's regulator on Tuesday welcomed a trading link to Shenzhen's stock market which will allow access to a new group of Chinese technology for foreign investors.
Hong Kong opened a similar stock-trading link to Shanghai's exchange nearly two years ago, the Shanghai-Hong Kong Stock Connect.
A new trading link to Shenzhen, where far more technology stocks are traded than in Shanghai, follows the Shanghai link, which has reportedly seen mixed activity from both mainland Chinese investors and foreign ones.
Market Volatility
«In the past year or so, while the stock and foreign exchange markets in Hong Kong and mainland experienced heightened volatilities at times, currency conversion, settlement and liquidity arrangements arising from the Stock Connect scheme have been functioning well,” Hong Kong Monetary Authority Norman Chan said in a statement.
The Shenzhen exchange link is meant to bolster Hong Kong's growth as a global offshore renminbi hub. HKMA indicated it wouldn't be shy about intervening if market volatility hits again.
«As the Shenzhen-Hong Kong Stock Connect rolls out, the HKMA will continue to closely monitor market development and provide renminbi liquidity support to the market when necessary,” Chan said.
