Greater China shares slumped Monday amid disappointment over the delay of the Shanghai-Hong Kong Stock Connect, but market participants remain hopeful the scheme will be launched by year-end.
Hong Kong Exchanges & Clearing (HKEx) said on Sunday that there remains no firm timetable for launching the so-called "through train", which directly links the two stock exchanges and is an major step in China's efforts to open up its capital market.
HKEx said it has not received the relevant approval for the launch of Stock Connect and noted that further announcements would be made as and when there were material developments on the timeline of launch.
Hong Kong 's benchmark Hang Seng index traded down almost 1 percent, led by declines in Hong Kong Exchanges and Clearing, which plunged 3.8 percent. China's Shanghai Composite, meanwhile, fell 0.6 percent.
"Clearly, this is a disappointment for the market in the shorter-term," Jing Ulrich, managing director and vice chairman of Asia Pacific at JPMorgan Chase told CNBC.
The delay in the launch of the Stock Connect, which was announced in April with a six-month deadline to begin operations, comes amid ongoing pro-democracy protests in Hong Kong raising speculation over whether the postponement is a result of political tensions.