HK-Shanghai stock link needs time: regulator

Hong Kong

THE chairman of China's securities regulator said on Monday that it will take time for trading on the Hong Kong- Shanghai equity link to grow as international investors get familiar with China's securities rules while regulators improve the scheme. His comments come amid growing pressure from foreign banks and asset managers on Hong Kong and Chinese authorities to iron out regulatory and technical wrinkles that have kept many foreign investors away from the Hong Kong-Shanghai Stock Connect.

"Two months have passed and we still lack experience, but everything has gone well," said Xiao Gang, chairman of the China Securities Regulatory Commission (CSRC), speaking on a panel at the Asian Financial Forum in Hong Kong. "International investors are not used to this mechanism. It will still take time for the two sides to get familiar and on this basis, both sides need to work hand in hand to improve this mechanism."