On November 17th, the Shanghai-Hong Kong Stock Connect celebrated its first anniversary. Michael Chan, Asia-Pacific Head of Asset Servicing at BNY Mellon, looks back on the first year since implementation of the stock-linkage and shares his views on its prospects and what we might expect going forward.
“The launch of the Shanghai-Hong Kong Stock Connect was widely viewed by the industry as the biggest advancement in China’s internationalization journey in recent years. It has been a fruitful year with a number of significant developments - which is encouraging - including further expected enhancements which will most likely attract greater interest,” said Michael.
“It is important to look at the opening of China’s capital market as a gradual process and the Shanghai-Hong Kong Stock Connect program has been a very good first step - ahead of the expected introduction of the next phase, the Shenzhen-Hong Kong Stock Connect.
“The extension of the Stock Connect program to include Shenzhen is a welcomed move in the opening of China’s capital market. With such, investors will have the added opportunity to access shares in China’s onshore market, offering another route to the destination at the back and in addition to the original progressive Stock-Connect program.”