Equity 'indexation effect' tipped to benefit HK market

Chinese authorities intend to exploit the “indexation effect” of Hong Kong’s stock through-train in the absence of China from mainstream global indices, a fund manager claims. Speculative pressure in Shanghai stocks is being contained by mainland measures that are also pulling benchmarked investors towards China via Stock Connect. It follows the freeing up of mainland mutual funds by Chinese authorities, allowing them to invest in Hong Kong equities via the cross-border trading …