Shenzhen exchange explores stock pipeline with Hong Kong - China media

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

Service.

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

readiness.

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)