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

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

Assessment

Interactive Video

Business

University

Hard

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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.

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5 questions

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1.

OPEN ENDED QUESTION

3 mins • 1 pt

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

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2.

OPEN ENDED QUESTION

3 mins • 1 pt

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

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3.

OPEN ENDED QUESTION

3 mins • 1 pt

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

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4.

OPEN ENDED QUESTION

3 mins • 1 pt

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

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5.

OPEN ENDED QUESTION

3 mins • 1 pt

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

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