Investors await Shanghai-Hong Kong Stock Connect program launch

Global Business

Investors are awaiting word from Beijing on the exact date of the launch of the Shanghai-Hong Kong Stock Connect program. CCTV’s Cathy Yang reports from Hong Kong.

Hong Kong Exchanges and Clearing Ltd. Chief Executive Charles Li said last Friday they are waiting for regulators to decide on the best time to launch. The company operates a securities market and a derivatives market, as well as clearing houses for those markets.

The Stock Connect program would link the stock markets in Shanghai and Hong Kong. Under the program, investors in Hong Kong and Mainland China can trade and settle shares listed on each market via the exchange and clearing house in their home market. The markets held a two-day rehearsal run of the program in September.

Hong Kong and Chinese Mainland regulators had earlier signed a memorandum of understanding on cross-border regulations, but implementation has been delayed. Hong Kong trading has been heavily impacted in the past few weeks by the recent demonstrations in the city.

CCTV America is joined by Economic and Public Affairs commentator Einar Tangen to talk about China’s economy what the latest data means.