Further opening of capital markets between mainland and HK.
“Through train” connection between Hong Kong Shanghai Exchanges announced by Li Keqiang at “Asia’s Davos”. Pilot scheme, due to begin in 6 months’ time, will allow Mainland investors to buy shares/stocks in eligible companies listed in Hong Kong, and vice versa. Although trade volumes will be small to begin with, there is scope to ratchet up quickly. Positive reactions from markets and corporates, including UK banks with operations in Hong Kong. Another opportunity for London to follow Hong Kong’s lead. And a further step along the way towards the opening of China’s capital account.