Chinese investors ramp up use of Stock Connect

Chinese investor flows into Hong Kong equities via the Stock Connect trading link have accelerated in the past two months, amid rising demand for overseas exposure and a weakening renminbi. This trend is thought to be driven above all by mainland asset managers and insurance firms, and likely also reflects foreign investors’ preference for H-shares and reluctance to buy mainland A-shares. Moreover, H-shares are currently cheaper than Shanghai stocks. Chinese investors poured a n…