Shanghai-Hong Kong Stock Connect – HK as an information and knowledge centre specialising in Mainland investment market

The Shanghai-Hong Kong Stock Connect was officially launched this morning. This has great significance for Hong Kong's financial sector.

People may be more concerned about the difference between the amounts of southbound investment from the Mainland and northbound investment from Hong Kong. But they must understand that the money invested in Mainland shares through Hong Kong actually includes funds from around the world. Now, global investors can conveniently buy Shanghai A-shares through Hong Kong's stock market and share the fruits of China's economic growth. The significance of the Shanghai-Hong Kong Stock Connect therefore lies not in the relative flow of capital but in the reinforcement of Hong Kong's status as an information and knowledge centre specialising in the Mainland investment market.

When considering buying Mainland shares, global investors need information and analysis services, and Hong Kong is internationally acclaimed for providing such services in a sophisticated, professional and objective manner. The launch of the Shanghai-Hong Kong Stock Connect will therefore create more employment and development opportunities in the local economic, financial and stock information and analysis services. On the other hand, Shanghai-listed enterprises wishing to attract global investors to buy their A-shares may also use our professional marketing services to draw the attention of securities analysts, commentators and financial media in Hong Kong. All of this means more opportunities for our financial services sector.  When the pie becomes bigger, our young people will have a greater chance to get a bigger and better slice.

November 17, 2014