Uneasiness over Shanghai-HK rules keeps big players at bay

Hong Kong

PROFIT-TAKING and queasiness about the rules blighted trading via the Shanghai-Hong Kong stock connect this week after a brisk first day when mostly hedge funds and private banks snapped up all the available mainland shares within hours.

The scheme, which lets foreign investors directly invest in Shanghai-listed shares for the first time and mainland investors buy Hong Kong stocks, reached the 13 billion yuan (S$2.8 billion) daily "north-bound" quota on Monday, but achieved only 37 per cent on Tuesday, 20 per cent on Wednesday and 18 per cent on Thursday.

That was partly down to a well-telegraphed ambush by mainland investors,…