The equity trading link will go live on December 5, with Chinese insurance firms expected to boost flows into Hong Kong and hedge funds showing interest in Shenzhen stocks.
The launch of Shenzhen Connect will not spark big flows into Chinese stocks given current price levels and concerns about mainland market access, says the French bank.
The long-awaited trading link received approval yesterday and is set for launch in December with no aggregate volume limit and exchange-traded funds to be included next year.
China's central bank posted an article this week saying that Shenzhen Connect would launch this year, raising hopes among investors. But the document turned out to be some six months old.
The small-cap equity ETF will list today in Hong Kong with the aim of trading via the Shenzhen-HK Stock Connect, despite uncertainty over the trading link's launch date.