Surging Foreign Activity in Chinese Stocks Will Test Beijing

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Heard on the Street: Surging foreign activity in Chinese stocks will test Beijing

All roads are currently headed north when it comes to Chinese stocks. Overseas investors have been piling into mainland shares in recent days using the Stock Connect trading link with Hong Kong, taking trading volumes via the system to their highest level since it launched just over four years ago. Further growth, though, won’t be pain-free.

Despite skepticism at its outset, Stock Connect has become a smooth and well-liked method for investors to access the mainland’s shares. This year’s rally in Chinese stocks, along with...

 

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