HK lawmakers grill minister on launch of stock connect scheme
Several lawmakers grilled a financial minister on whether the Occupy Central protests in Hong Kong has led to a delay of the stock through train scheme linking the stock exchange of the city with Shanghai.
Several lawmakers grilled a financial minister on Wednesday morning on whether the Occupy Central protests in Hong Kong have led to a delay of the stock through train scheme linking the stock exchange of the city with Shanghai.
They raised the questions to Professor Chan Ka-keung, Secretary for Financial Services and the Treasury, in an oral question session during the weekly regular Legislative Council meeting on Wednesday.
“An MOU (Memorandum of Understandings) has been signed between the Hong Kong and mainland regulators and all technical aspects has been ready but there is still no launch date announced,” said Christopher Cheung Wah-fung, a legislator representing the financial services sector.
“Does it mean the scheme would miss its October deadline and would be delayed as a result of Occupy Central? The street protests over the past few weeks have affected international investors’ confidence to trade in the Hong Kong stock market. The local market and brokers will be further be hard hit if the Occupy Central would lead to a delay of the stock through-train and that may reflect the Central Government has changed its financial policy to support Hong Kong,” Cheung said.
The street protests over the past few weeks have affected international investors’ confidence to trade in the Hong Kong stock market
Several other lawmakers echoed his views.
Chan said however that Occupy Central is not related to the launch date of the stock through train.
“The bourses and brokers in both Shanghai and Hong Kong are still in the final stage of preparations to the launch of the stock through train. The regulators will announce a launch date when they consider everything is ready,” Chan said.
“I understand the worries from the markets about the Occupy Central which may impact investors’ confidence to trade here. But the launch date may not be related to Occupy Central. The Central Government still has confidence in the Hong Kong financial markets,” the professor said.
Beijing in April announced the scheme to link the two stock markets will begin six months later in October but no announcement of a launch date has led many lawmakers to believe the scheme will be delayed.
Some other lawmakers also expressed concern over investor protection under the scheme and worry Hong Kong and international investors may not get compensation when the mainland listed A-shares they buy run into problems.
Chan said Hong Kong’s Securities and Futures Commission and the China Securities Regulatory Commission signed the MOU to strengthen enforcement but said investors should be aware of the differences in trading rules and practices in Hong Kong and Shanghai.
