China’s Stock Exchanges Game Changer
China announced a major game-changer in the world of stock exchanges. Allowing direct share trading between the two financial hubs of Hong Kong and Shanghai could be in place within six months. The program is titled the “Shanghai-Hong Kong Stock Exchanges Connectivity Mechanism.
Combined daily cross-border trading of $3.78 billion US Dollars (€2.73 billion) is a major signal to attracting foreign investors and continued integration of Hong Kong to mainland China. The goals are ambitious to be the largest stock exchange in Asia.
This game-changer is being promoted as an important breakthrough in opening up the tightly-controlled and regional mainland China market to international investors.
GBAC’s Platinum League of Audit Committee Executives has advised clients to monitor this integration with caution for liquidity issues.
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