The Shanghai and Hong Kong stock exchanges will conduct simulated trading for the through train programme tomorrow, renewing hopes for an imminent launch of the cross-border equity trading system.
 Brokerages in Shanghai were informed by the Shanghai Stock Exchange of the resumption of the tests following a time-out last week, according to two sources at local securities firms.
The two exchanges have been testing the trading system on weekends for some time until the tests were suspended last week, raising concerns that the October launch of the much-anticipated stock connect scheme had been shelved by the regulators.
In April, the authorities had said the two exchanges would take six months to complete technical preparations for the through-train scheme, under which investors on the mainland and in Hong Kong would be allowed to conduct cross-border share trading.
Though the regulators never officially announced a clear-cut date for the launch of the through-train programme, it was widely believed to be October 27. But no announcements were made that day, to the disappointment of the markets, which have been eagerly awaiting the scheme. The Shanghai exchange would not comment on the planned testing.
"The resumption of testing is a positive sign, but the guessing game will continue unless the regulators publicly announce a date," said Dong Jun, a Shanghai-based hedge fund manager. "It seems mainland investors are more eager to see a launch now that A shares are still trading below H shares."
Yesterday, the Hang Seng AH Premium Index that tracks the price difference between the A shares and H shares of firms with dual listings in Hong Kong and Shanghai, closed at 97.5, meaning that A shares, listed in Shanghai, were trading at a 2.5 per cent discount to their Hong Kong-listed counterparts.
Yao Gang, a vice-chairman of the China Securities Regulatory Commission, told a financial forum in Beijing yesterday that preparations for the stock link scheme had reached the final stage. Ashley Alder, chief executive of Hong Kong's Securities and Futures Commission, said on Wednesday it would start in the "not too distant future".
The CSRC does not have the final say on the programme's launch date. The State Council under Premier Li Keqiang is responsible for reviewing the preparatory work involving joint efforts from different ministry-level authorities, including the foreign-exchange regulator and the administration of taxation, before it gives the go-ahead.
Brokerage sources said the two exchanges had conducted a series of tests on the IT systems in previous weeks, focusing on particular aspects each time. |
