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Shanghai stock quota sees 20% take-up on 3rd day of link scheme

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Foreign buyers used only 20 per cent of their 13 billion yuan (US$2.12 billion) daily quota of Shanghai stocks on Wednesday as demand for mainland shares cooled noticeably two days after a scheme connecting the Hong Kong and Shanghai markets debuted.

[HONG KONG] Foreign buyers used only 20 per cent of their 13 billion yuan (S$2.76 billion) daily quota of Shanghai stocks on Wednesday as demand for mainland shares cooled noticeably two days after a scheme connecting the Hong Kong and Shanghai markets debuted.

Trading was sedate on Wednesday compared with Monday, when the full daily investment quota for Shanghai stocks was quickly taken up as international investors scrambled to get into mainland markets.

The Stock Connect scheme, which allows Hong Kong and Shanghai investors to buy and sell shares on each other's bourses, is the latest step towards opening China's tightly controlled capital markets.

REUTERS