A landmark program that connects the stock markets of Shanghai in mainland China and the autonomous city of Hong Kong has officially been launched today, with investors showing both eagerness, excitement and caution on the first hours of trading.
The Shanghai-Hong Kong stock connect allows investors from Shanghai and Hong Kong to trade stocks from each others' stock market. That means Hong Kong investors now have access to the once closely-monitored and strictly territorial Shanghai Stock Exchange.
Investors in mainland China also now has access to Hong Kong, which is considered as a financial hub, and further opens the country's stock market to global investors.
In the first hour of trading, both exchanges immediately registered a one percent rise. The gain, however, was immediately erased as investors became cautious at the possibility that there were those who had already positioned well prior to the launch of the stock connect program.
Investors are now in a wait-and-see mood as the world closely watches how the landmark stock exchange connect program will do in the coming days.
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