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在线翻译:
szdaily -> Markets -> 
HK seeks to soothe investors over new stock connect rules
    2018-07-17  08:53    Shenzhen Daily

HONG KONG’S stock exchange yesterday described as “temporary” a dispute with its Shanghai and Shenzhen counterparts over plans to bar investor access to dual-class shares, a move that led to smartphone maker Xiaomi Corp. tumbling as much as 10 percent yesterday.

The Shanghai and Shenzhen stock exchanges said they would not allow mainland investors to buy shares in Hong Kong-listed foreign firms, companies with different voting right structures or so-called “stapled” securities.

Xiaomi, which made a weak debut last week, was the first company to list in Hong Kong with weighted voting rights (WVR) in a US$4.7 billion deal following a historic rule change in the city to allow dual-class share structures.

Investors had, however, hoped that Xiaomi’s inclusion later this month into the Hang Seng Composite index, which forms the basis for shares included in the stock connect, would help attract a flow of capital from the mainland.

The stock connect program links the Shanghai, Shenzhen and Hong Kong bourses, allowing mainland investors their only direct means of trading offshore stocks and international investors access to mainland-listed companies.

The Shanghai and Shenzhen exchanges announced Saturday they would block mainland access after consulting mainland brokerages and that most investors expressed a lack of understanding of the new types of securities.

CEO of Hong Kong Exchanges & Clearing (HKEX), Charles Li, said yesterday he would discuss the move with mainland regulators and his bourse counterparts as part of a trip to the mainland planned for this week.

“When you look at the two announcements, it is not about whether to include, it’s about when to include — it’s about temporarily giving people a chance to look at it, to study how it will work, but the direction of the inclusion is not changing.”

He said that any small difference between the exchanges was not going to change the role of Hong Kong as a connector between international markets and the mainland.

Some observers attributed the Shanghai and Shenzhen decision to cultural differences between the two markets. (SD-Agencies)

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