City investors will be given better access to the world’s second largest equity market today when China’s Shanghai Stock Exchange launches a landmark tie-up with its Hong Kong counterpart.
The Hong Kong-Shanghai Stock Link, which launched in the early hours of this morning, will allow investors to buy Chinese stocks directly for the first time ever.
The link will allow investors from the UK and elsewhere to buy and sell Shanghai-listed shares through the Hong Kong exchange, while Chinese investors will be able to do likewise with Hong Kong-listed shares. Stocks listed in Hong Kong well known to City audiences include HSBC and Standard Chartered.
Investors have previously had to use to two schemes to access Chinese stocks, the Qualified Foreign Institutional Investor , known as QFII, and the Renminbi Qualified Foreign Institutional Investor, known as RQFII.
Investors in Hong Kong will be limited to buying 13bn renminbi (£1.35bn) of China-listed shares a day.
Around 150,000 investors in mainland China have registered to invest in shares listed on the Hong Kong exchange.