Trading hit record levels in Hong Kong Wednesday, powered by the arrangement that facilitates trading between Hong Kong and mainland China.
Hong Kong Exchanges and Clearing Ltd. (HKEx) reports that market turnover reached an all-time high of HK$252.4 billion Wednesday, surpassing the previous record of HK$211 billion, which was set back in October 2007. The record activity came as trading through Shanghai-Hong Kong Stock Connect surged to its best level since its launch back in November 2014.
The exchange also reported single-day records for both southbound and northbound market turnover through Stock Connect, and that the market cap of Hong Kong-listed shares also reached a record high of HK$28.6 trillion.
“Stock Connect was one of the catalysts for today’s record high securities market turnover,” said HKEx chairman, C K Chow. “The programme has given us another source of market liquidity that was enhanced by the Mainland authorities’ recent clarification of policies regarding institutional investor participation in Stock Connect.”
“We’re excited about today’s records, including the southbound record,” said HKEx chief executive, Charles Li. “The increased trading is an encouraging sign that we’re on the right path and should continue pursuing our vision, but this is just a start. We are in the midst of a profound structural change: the gradual but accelerating opening of Mainland China’s financial markets. Stock Connect is less than five months old and there’s much more to come.”
However, Chow also sounded a note of caution, saying, “Investors should always be cautious, especially in times of very positive market sentiment, because it can come and go.”