HONG KONG -- Hong Kong stocks are rising sharply in heavy trade recently, thanks in part to a link between the Hong Kong and Shanghai exchanges.
Once derided as a "ghost train" due to a lack of transactions, the link forged last fall between the Hong Kong and Shanghai stock markets now seems to be working as advertised.
On Wednesday, mainland investors hit the 10.5 billion yuan ($1.69 billion) daily trading limit for the first time, thanks to moves by the Chinese government to ease restrictions on "southbound" investment in Hong Kong shares.
According to the Shanghai Stock Exchange, the daily quota for southbound trading was reached by around 1:50 p.m. Thursday, about 20 minutes earlier than the previous day.
With market players growing more confident in the link, "Trading through the mutual investment programme will stay active in the coming month or two," said Patrick Shum Hing-hung, investment director at Tengard Fund Management.
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