China ETFs rocked and UBS shocked by Stock Connect
The launch of a market access scheme between Hong Kong and Shanghai last November had some odd consequences, sending the market for some China ETFs into a tailspin, and leaving UBS and others with paper losses
It was supposed to herald the next phase in the expansion of China's onshore equities markets, but the November launch of Stock Connect – an initiative between the exchanges of Shanghai and Hong Kong, designed to provide mutual access to one another's markets - has led to widespread, persistent price dislocations and sizeable paper losses for dealers in some cases.
Market participants say a sudden influx of foreign capital into Shanghai-listed A-shares following the scheme's launch led to a
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