China Is Said to Push for Arbitrage Cap on Shanghai-London Stock Link

The video discusses the Hong Kong and London Stock Connect programs, focusing on China's incremental reforms to open capital markets. A key issue is the fungibility of shares traded on both markets, which allows swapping shares between Shanghai and London. China is concerned about capital control circumvention and is considering introducing controls, which could deter investors. The debate continues between market participants and Chinese authorities on whether to allow full fungibility.

What are the implications of the London-Shanghai connectors for investors?

How might the introduction of controls affect the fungibility of shares?

What concerns do investors have regarding the ability to swap shares?

What do investors desire in terms of share exchange between markets?

What is the current stance of Chinese authorities on share exchange controls?