Seeking Alpha

China to link Hong Kong and Shanghai stock exchanges

  • China intends to connect the Hong Kong and Shanghai bourses and enable total cross-border trading of 23.5B yuan ($3.8B) a day.
  • Investors will be able to trade 10.5B yuan of Hong Kong-listed shares via Shanghai and 13B yuan of mainland stocks through Hong Kong.
  • The plan is part of China's attempts to liberalize its economy, with Premier Li Keqiang saying it will "further improve the opening and healthy development of capital markets in China and Hong Kong."
  • News of the plan helped Chinese and Hong Kong stocks rise despite weak trade figures.
  • The Shanghai Composite ended +1.4% and the Hang Seng gained 1.7%.
  • ETFs: FXI, PGJ, GXC, FXP, YINN, YANG, MCHI, XPP, YAO, YXI, CHXF, FCA, TCHI
  • ETFs: EWHS
From other sites
Comments (5)
  • Pompano Frog
    , contributor
    Comments (1526) | Send Message
     
    Keith..

     

    I am relatively sure the Chinese economic planners understand that to reach their private sector growth goals over the next 10 years they need a strong stock market.

     

    Entrepreneurial capital is a function of M2 (banking deposits) plus the stock market capitalization. A stock market at 20x earnings generates enormous wealth for the entrepreneurial class and it also acts as a signal to this same group that expansion is profitable.

     

    As the p/e ratios expand they also force companies to raise their growth targets and if you don't your competitors will.

     

    This is why the economy expands six months (roughly) after the move in the market. It is not because the market, in its infinite wisdom, sees the coming turn.
    10 Apr 2014, 06:05 PM Reply Like
  • lensenkomedia
    , contributor
    Comments (5) | Send Message
     
    You can only build ghost cities for so long.......
    14 Apr 2014, 08:31 PM Reply Like
  • samuel_liu
    , contributor
    Comments (2798) | Send Message
     
    because the cities will gradually fill up with people!
    14 Apr 2014, 10:22 PM Reply Like
  • comeonin
    , contributor
    Comments (61) | Send Message
     
    It would be bad for our investment return to be stuck in cliches such as "ghost city". The so called "ghost city", to whatever extent it existed, was the product of a "growth at all cost" strategy that is being abandoned today.
    I have never get an honest answer from those cliche users to quantify their claim. Questions such as the size, and the percentage of "ghost" among the total home and infrastructure construction. Do they count all construction, housing and infrastructure, as "ghost city" ? Do they only count residential constructions? What is the percentage of "ghost" and "non ghost"?
    Some real figures from the "ghost" cliche user on this board would be helpful.
    16 Apr 2014, 01:15 PM Reply Like
  • samuel_liu
    , contributor
    Comments (2798) | Send Message
     
    I hate the term "ghost city" or "housing bubble" as I've been in Cn for the past 18.5 years.

     

    Though empty, there are purchasers of those homes; I wouldn't call my pastorate ignorant.

     

    Just there is to be an expected dip in those prices.

     

    Here's an article though:

     

    http://on.wsj.com/1gByOxb
    16 Apr 2014, 05:29 PM Reply Like
DJIA (DIA) S&P 500 (SPY)
ETF Hub
ETF Screener: Search and filter by asset class, strategy, theme, performance, yield, and much more
ETF Performance: View ETF performance across key asset classes and investing themes
ETF Investing Guide: Learn how to build and manage a well-diversified, low cost ETF portfolio
ETF Selector: An explanation of how to select and use ETFs