Chinese capital finds channel in HK stocks via exchange links

Hong Kong

AS CHINA tightens its grip on capital controls, one state-sanctioned haven from a weakening yuan is drawing attention.

Mainland investors will turn to buying Hong Kong stocks through cross-border exchange links as other ways of purchasing overseas assets become more difficult, said Kenny Tang, vice-chairman at Jun Yang Financial Holdings Ltd. An increase in flows would provide a boost to a stock market that has trailed global peers over the last four years, he said.