HONG KONG, Aug 27 (Reuters) - The Shenzhen stock exchange
has submitted a plan to launch a programme letting it connect to
Hong Kong's stock market like one planned for Shanghai, media
reports said on Wednesday.
Authorities in the southern Chinese city will promote the
launch of a "through train" stock trading system similar to what
is being launched between Hong Kong and Shanghai, the official
China daily reported, quoting Xiao Zhijia, deputy
director-general of Shenzhen's Office of Financial Development
When contacted by Reuters, Shenzhen's office of Financial
Development Services did not immediately respond to a request to
comment on the article.
The Shenzhen stock exchange, a rival to Shanghai's market,
looks to emulate the Nasdaq in the United States by focusing on
companies in their early growth stages. It also has some
big-name listings, including China Vanke, the
country's biggest residential property developer.
Authorities expect the landmark stock-connect programme
between Shanghai and Hong Kong - another step in China's efforts
to open up its markets - will launch in October. Regulators and
market participants are racing to test mechanisms to ensure
While China investors anticipate a wave of institutional
money will flow into the mainland's relatively undervalued
markets, Hong Kong stock punters are hoping Chinese money will
boost trading volumes and lift stocks.
The Shanghai Composite Index rose to eight-month highs last
week, and Hong Kong's Hang Seng Index reached a more than
six-year high this week as investors hailed the latest
development as a catalyst for further market gains.
(Reporting by Grace Li; Writing by Saikat Chatterjee; Editing
by Richard Borsuk)