Dubbed as China’s equivalent of the Nasdaq, the Shenzhen stock market trades small and medium sized Chinese companies including software, high-tech, and biotechnology stocks. (image: Scott Brown)
SEOUL, March 25 (Korea Bizwire) – As the Shenzhen Stock Exchange is expected to open to international investors in the latter half of this year, Korean securities companies are busy preparing to join the market by aligning their trading systems and analyzing the stock items in the market.
According to financial industry observers, the stock connect between Hong Kong and Shenzhen will begin in September or October this year. Dubbed as China’s equivalent of the Nasdaq, the Shenzhen stock market trades small and medium sized Chinese companies including software, high-tech, and biotechnology stocks, and the stock connect with Hong Kong will allow foreign investors to participate in the market.
To advance into the new market ranked 7th and 4th in terms of market capitalization and trade value, Korean stock companies are also anxious about preparing for their advancement into the market.
For example, Samsung Securities, which topped the Shanghai-Hong Kong Stock Connect in terms of trade volume, expanded its China desk, which provided investment information on Chinese markets for its Chinese operations. It partnered with China’s CITCI Securities, and will offer investment information and materials to investors.
Meanwhile, Taiwanese stock firm Yuanta Securities, with its knowledge of the Great China region, will publish the “Shenzhen-Hong Kong Stock Connect Guidebook” prior to its launch, compiling its research capabilities in the region. It also plans to set up an Internet portal for overseas investment in the first half of this year.
Shinhan Investment established a China desk comprised of experts on Chinese stock and bond markets, and KDB Daewoo Securities will reinforce its capabilities through research and partnerships with Chinese companies.
By John Choi (johnchoi@koreabizwire.com)
