When the direct trading link between stock markets in Shenzhen and Hong Kong opened this month, local dignitaries were easy to spot at the launch events. Less conspicuous were international investors ready to take advantage of what was billed as a big opportunity to buy into Chinese equities.
The link offers foreign investors greater access to shares on the Shenzhen Stock Exchange, home to some of China’s up and coming technology companies. However, flows into the newly available market reached just a fifth of their daily limit on its debut and have failed to match that since.
Judged by the money, international interest in Chinese stocks remains anaemic. However, talk to strategists focused on the country and many think the world’s second-largest capital market could be on the brink of another bull run.