Shenzhen-Hong Kong Stock Connect comes two years after the Shanghai-Hong Kong Stock Connect. What are the differences and what does the new mechanism mean to mainland investors?
The first adjustment will be a surge in the number and a wider spectrum of Chinese stocks accessible to overseas investors... from blue chips of state-owned enterprises to smaller stocks of private and innovative companies. In return, mainland investors will have about a hundred more Hong Kong stocks available for trading.
The second change is a lower capital threshold for mainland investors.
The third major difference is that the annual transaction limit will be replaced with a daily limit, further clearing the way for a more diverse pool of equities for investors' portfolios.