The Story of Stock Connect & China Equity Investing

Stock Connect began in November 2014, what does it mean for China A-share investing and onshore and offshore China stock exchanges?

15 Oct 2019
  • Stock Connect has changed China equity investing for the better.
  • It started on November 17th, 2014 with the Hong Kong Shanghai Stock Connect.
  • Stock Connect linked international investors with the Shanghai Stock Exchange via Hong Kong as well as allowing Shanghai investors to allocate to stocks on the Hong Kong Stock Exchange.
  • Stock Connect was extended to link the Hong Kong Stock Exchange and Shenzhen Stock Exchange on December 5th 2016.
  • To date, the program has brought more than USD 110bn of overseas capital into China's A-share markets, according to Bloomberg data.
  • Also, the improved access from Stock Connect was a key reason why China A-shares were included in the MSCI equity benchmarks from June 2018.
  • Many years ago, China stocks were divided between onshore stocks, i.e. listed in mainland China, and offshore stocks, i.e. listed in Hong Kong or US markets.
  • Now, we believe the success of Stock Connect means the distinction between onshore and offshore China equities has disappeared.
  • Instead, we believe that investors should look at China equities from an All China perspective, i.e. investing according to wherever the best opportunities are, not because of where they are located.
  • And we believe that's why Stock Connect has changed China equity investing for the better.

Read more

Equities

Equity investments from a global player

 

Asset Management services and solutions in your location

Please select your region

 

For further information on what we can offer you, please get in touch.

Canada Asset Management

Views and opinions expressed are presented for informational purposes only and are a reflection of UBS Asset Management’s best judgment at the time a report was compiled, and any obligation to update or alter forward-looking statement as a result of new information, future events, or otherwise is disclaimed. Commentary is provided at a macro level and is not with reference to any investment strategy, product or fund offered by UBS Asset Management and is provided in Canada generally pursuant to the registration exemption provided for in Section 8.25(2) of National Instrument 31-103 and in Ontario pursuant to Section 34 of the Securities Act (Ontario) and does not purport to be tailored to the needs of the person or company receiving the advice.. The information contained in the materials should not be considered a recommendation to purchase or sell any particular security. The materials and content provided will not constitute investment advice and should not be relied upon as the basis for investment decisions. As individual situations may differ, clients should seek independent professional tax, legal, accounting or other specialist advisors as to the legal and tax implication of investing. Plan fiduciaries should determine whether an investment program is prudent in light of a plan's own circumstances and overall portfolio. UBS Asset Management services offered to Canadian persons are provided by UBS Asset Management (Canada) Inc., a Nova Scotia corporation. UBS Asset Management (Canada) Inc. is an indirect wholly-owned subsidiary of UBS AG and is registered as a portfolio manager and exempt market dealer (in all provinces of Canada), commodity trading manager (Ontario), adviser – commodity futures (Manitoba) and investment fund manager (Ontario, Quebec and Newfoundland), all pursuant to Canadian securities law. Materials may include forward-looking statements. Actual future results, however, may prove to be different from expectations. Past performance is no guarantee of future results. Potential for profit is accompanied by possibility of loss.

Please confirm you are a Canada resident to proceed.

Confirmation
Please select at least 1 checkbox