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Hot stock: SGX retreats, after refuting talk of trading link with China
SHARES of the Singapore Exchange (SGX) pared the strong gains they made this week, after the Singapore bourse operator said it was not in talks to set up a trading link with China.
The stock lost 16 Singapore cents, or nearly 2 per cent, at S$8.43.
It said on Wednesday it is not currently in the process of establishing a stock trading link similar to the Shanghai-Hong Kong Stock Connect.This was in response to a query on the same day from its regulator, the Monetary Authority of Singapore (MAS), following market rumours about a potential stock trading link with China as a possible reason behind the recent price surge of the SGX stock.
In its clarification, SGX added that it "remains open to future collaborations which benefit our partners and shareholders".
The stock connect has been a huge fillip for Hong Kong, which registered record trading volumes as Chinese investors packed into the market.
Hong Kong Exchanges and Clearing chief executive Charles Li said earlier that there are plans to expand the number of shares that can be traded via the stock connect, and boost trading quotas. Mr Li also told media that he wants to introduce cross-border financial derivatives this year so investors can hedge their risks.