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Hong Kong connects to China's booming tech sector

Monday, December 05, 2016 - 01:35

A long waited stock trading link between Hong Kong and China's tech dominated Shenzhen exchange went live on Monday. As Tara Joseph reports, the connection gives international investors access to hundreds of tech stocks listed in the booming southern Chinese city of Shenzhen.

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Revving up global investor access to China's hottest sector: Technology. A long awaited trading link between Hong Kong's internationally accessible stock market and China's tech dominated Shenzhen exchange going live on Monday. The Shenzhen exchange has been one of the busiest stock markets in the world this year - beating New York's Nasdaq as the second most active exchange for several months of 2016. Big companies like property firm China Vanke are listed on the exchange exchange. But analysts are really eyeing are newer smaller tech plays - with 881 stocks to choose from. It sounds like a winning recipe, but there are some risks attached: China's stock market is notoriously volatile - dominated by mom and pop investors rather than big mutual funds. This is also Hong Kong's second stock connect program with mainland markets - after the Hong Kong-Shanghai's exchange link, which got off to a lukewarm start... and has mostly been used by Mainland Chinese investors to get money out of the country, rather than brining new cash into Chinese businesses. But with Beijing pumping billions of dollars into the Chinese technology sector - the opportunities of a tech-connect with China may outweigh the risks. There's certainly no shortage of options for anyone wanting to invest in China... Between Shanghai, Shenzhen and Hong Kong there's now 5 trillion dollars worth of investment potential.

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Hong Kong connects to China's booming tech sector

Monday, December 05, 2016 - 01:35