Hong Kong Exchanges and Clearing’s chief executive has described Stock Connect as a “long road” despite a week of record trading activity.
TheTRADEnews.com reported the record volumes earlier this week with the number of trades recorded on 8 April 3,105,978, smashing the previous record of 1,935,113.
According to HKEx CEO, Charles Li, he is still fielding many questions from mainland China and Hong Kong investors about the link.
“I want to say we should all take a deep breath after these record setting days and remember we’re on a long road,” he said. “Stock Connect is a bridge that was built to stay open, so there's no need for Mainland or international investors to rush to cross."
Li said that southbound investors have been asking if it is a good time to get into the market and raising questions about how they can join if the quota is filled, while Hong Kong investors are asking if the local market will become more volatile once quota restrictions are relaxed.
The HKEx chief also spoke about the risks involved with international investors and mainland investors dealing with each other for the first time in a statement.
“Stock Connect is the first time many Mainland investors are able to invest overseas, while their participation in Hong Kong will bring enormous opportunities and inject new vitality into our local securities market,” he added. “At the same time, their differences in investment values, risk awareness and regulatory cultures will bring new challenges and risks to Hong Kong investors, particularly retail ones. Staying calm and exercising caution in a more active market will be a challenge to each investor in Hong Kong.”