Shenzhen-HK stock link sees turnover of 1.3 trillion yuan in first year

After a year of steady operation, the Shenzhen-Hong Kong Stock Connect posted a cumulative transaction volume of 1.29 trillion yuan (195 billion U.S. dollars) as of Monday.

Northbound trading to Shenzhen registered 882.14 billion yuan, while southbound trading to Hong Kong registered 412.64 billion yuan.

Industry insiders said the scheme has helped sharpen the international competitive edge of the mainland and Hong Kong capital markets and increased their ability to serve the real economy.

Officials with the Shenzhen Stock Exchange said the program has become a bond connecting capital markets and investors in the two regions. The innovation-based companies listed on the Shenzhen bourse have become increasingly attractive to overseas investors.

With the opening of the Shenzhen-Hong Kong stock connect, investors have become more interested in overseas assets, said Zhang Xinnian with Ping An Securities. The number of Ping An clients trading on the Hong Kong bourse has grown by 75 percent from 2016.

The Shenzhen-Hong Kong stock connect was launched Dec. 5, 2016. A similar link between the Shanghai and Hong Kong stock exchanges was launched in November 2014.

Both schemes allow investors on the mainland and those in Hong Kong to trade selected stocks on each other's exchanges within a fixed daily quota.

(ASIA PACIFIC DAILY)