New Route to Trade Shanghai-Listed Securities

September 29, 2014

The Shanghai-Hong Kong Stock Connect program, expected to launch this fall, will give many European and U.S. funds, managers and individuals their first opportunity to trade Shanghai-listed equities. Stock Connect represents a significant liberalization of the stock markets in the People’s Republic of China. Until Stock Connect’s debut, investment by non-PRC persons will continue to be restricted and may be conducted only through investment quotas granted by PRC regulators. These quotas have never been available to all fund managers – for example, hedge fund managers have generally been discouraged from applying. In contrast, Stock Connect is open to any institutional or individual investor that has a brokerage account with an eligible broker in Hong Kong.

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