(China Alert) The Connect: One year review
- cross border, Stock Connect
·2015 was a year of growing global integration for the Connect
·Adding Connect exposure to a prospectus is now essential
·The Connect should expand in both geography and asset class
Update: After one year of operation the Connect’s usage stands at 40% and 37% for the northbound and southbound channels respectively. 2015 has been a year of global integration with the new channel, best characterized as a series of extreme highs and lows. Usage clearly reflected this and whilst there remains some trepidation among participants, the Connect is now a fixture of Chinese equity market access. Z-Ben Advisors believes it may also become a viable platform for fixed income and ETF trading between Hong Kong and the Mainland. And, somewhat surprisingly, the program has already asserted itself as an effective pilot transmission mechanism for linking China’s financial markets to global participants.
When comparing the Connect with other cross-border schemes, Z-Ben Advisors believes……
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