Institutional investors appear to be largely holding off from using the Shanghai-Hong Kong trading link, as expected, but will have drawn comfort from yesterday’s launch, said Z-Ben Advisors.
Hong Kong's exchange has confirmed the postponement of the Shanghai-Hong Kong trading link, with no future launch date specified. Some are linking the delay to the pro-democracy protests.
Commodities trading means Australian investors already feel exposed to China, notes State Street Global Advisors. But China's inclusion in MSCI's EM index would force investors to act.
A scheme to link the Hong Kong and Shanghai exchanges and allow institutions and wealthy individuals to trade cross-border is broadly welcomed. The launch is expected in six months, potentially alongside mutual recognition of funds.