The Shanghai and Shenzhen exchanges have tightened rules on trading suspensions, ahead of MSCI’s June 15 decision on whether to include A-shares in its emerging-market indices.
Beijing continues its efforts to dampen stock market volatility, amid investor skepticism about the likely effectiveness of new measures that were proposed in September.
After wild price swings on Shanghai Composite, the industry voices hope that Stock Connect and mutual recognition can bring much-needed diversification and broaden investor holdings.
As China opens its capital account, the country's foreign investor quota system is seen as declining in importance. In the second of two articles, AsianInvestor examines how prime brokers are responding.
Investors must be quick to sell H-shares and buy A-shares via the Shanghai-Hong Kong trading link to avoid losing the premium on HK-listed stocks, says the equity broker.
Interest in the A-share/H-share spread trade is tipped to rise come October, when the Shanghai-Hong Kong Stock Connect goes live, but profitability of the transaction may fall as a result.