Shenzhen-Hong Kong stock connect a natural development: Raymond Yeung

In an interview with ET Now, Raymond Yeung, ANZ, shares his views on the likely impact of Chinese central bank governor's comment on the linkage of Shenzhen and Hong Kong markets by the year-end.

ET Now: What do you make of this announcement? It could be a technical trigger. What does the news indicate?
Raymond Yeung: This is a formal announcement by the PBoC official, which is new, but the Shenzhen Hong Kong stock connection has not been fresh news because as it has already been announced much earlier this year.
Given the fact that the Shanghai-Hong Kong stock connect had already been implemented last year, this direct connection between Shenzhen stock exchange and Hong Kong stock exchange is pretty much a natural development because the Shenzhen stock exchange is also an important stock exchange in China. Given the backdrop of China's aim to liberalise its capital account, allowing the investors in the onshore market to invest in offshore market, the Hong Kong stock exchange will obviously be the first place to see this liberalisation happening.