Starting Tuesday, trading links via Hong Kong’s exchange operator allowing mainland traders to buy domestic stocks will halt through Feb. 17th due to the Lunar New Year holiday.
- While the shutting of the links for the Lunar New Year is an annual occurrence, traders are taking a closer look given this year’s unprecedented inflows.
- Some investors think it might be worthwhile to take some profit ahead of the trading link halt for stocks that are heavily boosted by mainland investors.
- The incentive to take money out of the market is low given that people swapping investment ideas during the holidays could spur further gains when the links with Shenzhen and Shanghai reopen.
- Investors say longer-term exposure to Hong Kong is appealing given the number of mutual funds piling into the city’s assets. The financial hub is the venue for an increasing number of hot startup listings and tech giants, including short-video platform Kuaishou Technology, etc.
- A-Shares are seen too volatile to mainland Chinese investors. Mainland Chinese are still just at the beginning of a long-term buying trend for Hong Kong stocks.