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Saturday, December 17, 2016, 09:50

Shenzhen-Hong Kong stock link attracts net overseas investment inflow

By Xinhua
Shenzhen-Hong Kong stock link attracts net overseas investment inflow
Financial analysts in Hong Kong reckon that the Shenzhen-Hong Kong Stock Connect, which will likely be launched in December, will facilitate larger and more balanced cross-border renminbi fund flows. ( Photo/VCG via europe.chinadaily.com.cn)

BEIJING -- More capital has flowed into Chinese mainland stock market than the Hong Kong market via the newly opened Shenzhen-Hong Kong stock link , China's top securities watchdog said Friday.

This situation is within our expectations, which means that overseas investors have certain capital allocation demands for mainland shares

Zhang Xiaojun, spokesperson with the CSRC

The Shenzhen-Hong Kong Stock Connect saw net capital inflow of about 8.8 billion yuan (US$1.26 billion) since opening on Dec 1 as overseas investors bought more shares on the Shenzhen Stock Exchange than their mainland counterparts did on the Hong Kong market, according to Zhang Xiaojun, spokesperson with the China Securities Regulatory Commission (CSRC).

The purchase channel for Shenzhen-listed shares was much more active than that for Hong Kong-listed shares , according to Zhang.

The most popular Shenzhen-listed stocks for overseas investment were home appliance makers Gree and Midea and liquor maker Wuliangye, whose transaction volume accounted for about one-third of the total trading volume over the past two weeks.

"This situation is within our expectations, which means that overseas investors have certain capital allocation demands for mainland shares," said Zhang, adding that it is too early to say whether the trend is set.

Read more: Tax breaks on Shenzhen-HK stock link

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