Foreign investors have snapped up Shenzhen-listed stocks using the new Chinese trading scheme that grants them unprecedented access to mainland shares — even as many fund managers remain wary about diving into an expensive and unfamiliar market.
Since the stock connect scheme was launched six months ago, the investors have used an average of 95 per cent of the daily quota for investment into Shenzhen. The value of sell orders has exceeded buy orders on only three days.
But the modest quota appears designed to satisfy the market’s early adopters while more cautious investors wait on the sidelines.
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