Shenzhen Connect unlikely to be a big draw: money managers

Hong Kong

A PLAN to connect the giant stock markets of Shenzhen and Hong Kong offers global investors tempting access to China's fast-growing tech sector, but high valuations and a reputation for wild speculation are likely to keep many buyers at bay, money managers said on Wednesday.

China's cabinet approved the long-awaited scheme on Tuesday, marking one of the country's biggest capital market reforms in over a year, though a launch date has yet to be set.

But the scars from last year's stock market crash are still fresh, and analysts say an avalanche of foreign funds is unlikely as the world's second largest economy continues to slow…