Institutional investors will be the key beneficiaries of the Shenzhen-Hong Kong Stock Connect, as they leverage on the gap between share prices on the exchanges, experts said Monday.
The Shenzhen-Hong Kong Stock Connect, which opened on Monday,is similar to the existing Shanghai-Hong Kong Stock Connect, which was launched in late 2014.
Investors in Hong Kong will be able to buy Shenzhen-listed stocks, including many prominent technology and consumer names in the mainland. In return, Chinese investors will have access to shares listed in Hong Kong.
"It's all about China building institutional investment. It's building insurance companies; it's building pension funds; it's building whole structures that we need for long-term investments," said Mark Tinker, who is Head of Framlington Equities Asia at AXA Investment Managers.