THE People's Republic of China is preparing to take a major step towards the creation of a "One China" (ie, one-price) equity market. Announced in April, the so-called through- train of Hong Kong/Shanghai mutual stock market access (MMA) appears to be on track for a mid-October launch, and it could add fuel to a continuation of the bull market in stocks traded in Hong Kong (H-shares).
While the H-share rally continues to derive support from a pick-up in China's business cycle and implementation of Third Plenary reforms, MMA would also raise the probability that stocks traded on China's mainland exchanges (A-shares) could emerge from their four-year bear market.
Although the launch itself only includes...
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