PASLA/RMA: Stock Connect is a work in progress
04 March 2015 Shanghai
Image: Shutterstock
A lack of activity in southbound trading on the Shanghai-Hong Kong Stock Connect is due to the absence of genuine demand, according to 64 percent of attendees at the Pan Asia Securities Lending Association/Risk Management Association Conference on Asian Securities Lending.
Fifty-six percent of the audience also felt that the reason for the northbound trading quota's disappointing results, compared to pre-launch projections, was due "operational issues".
Despite these responses, panellists were more optimistic, stating that the only market participants who meet the requisite thresholds for southbound trading have already invested.
In relation to northbound trading, the panel claimed that the quota was not, in fact, at a level lower than expected pre-launch.
One panellist said: "Although some clients are more measured and cautious, the quota is exactly where we expected it to be following conversations with them. It is simply a question of time."
Fifty-six percent of the audience also felt that the reason for the northbound trading quota's disappointing results, compared to pre-launch projections, was due "operational issues".
Despite these responses, panellists were more optimistic, stating that the only market participants who meet the requisite thresholds for southbound trading have already invested.
In relation to northbound trading, the panel claimed that the quota was not, in fact, at a level lower than expected pre-launch.
One panellist said: "Although some clients are more measured and cautious, the quota is exactly where we expected it to be following conversations with them. It is simply a question of time."
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