As expected, northbound orders on the first day of the Shanghai-Hong Kong Stock Connect outpaced southbound orders, as PRC traders looked south for mainland firms previously inaccessible in their home markets.
According to Hong Kong Exchanges and Clearing (HKEx), there were 102,911 trades flowing into the Shanghai exchange from the northbound Hong Kong channel and 20,645 passing in the opposite direction via the southbound route.
Each day, RMB 15 billion can flow northwards to Shanghai and RMB 10.5 billion can head south. 37% of the northbound quota was used and only 8% of the southbound quota.
Northbound turnover on monday was RMB 5.16 billion, of which 4.3% was from sell trades. Southbound turnover was HK$1.23 billion, with 11.9% being from sell trades. The ten most actively traded stocks in Hong Kong under the scheme were mainland stocks, including, within the top three, Tencent and China Mobile – both of which are among China’s largest companies, but have not previously been available to mainland investors.