BOFIT Viikkokatsaus / BOFIT Weekly Review 2016/33
On Tuesday (Aug. 16), the State Council approved linking of Hong Kong and Shenzhen stock trading without giving a specific start day. A Hong Kong stock exchange press release said that trading was expected to begin within four months. The Shenzhen-Hong Kong Stock Connect project follows the Shanghai-Hong Kong Stock Connect programme launched in November 2014. As with the sister Stock Connect programme, trading in shares on the Shenzhen exchange via the Hong Kong exchange (and vice versa) are subject to daily quotas. An innovation is that there will be no overall quotas, and they have now been abolished for Shanghai-Hong Kong trading as well.