China Stocks Jump on Hopes Xi Will Announce Reforms in Shenzhen
Comment of the Day

October 12 2020

Commentary by Eoin Treacy

China Stocks Jump on Hopes Xi Will Announce Reforms in Shenzhen

This article from Bloomberg may be of interest to subscribers. Here is a section:

Xi is expected to shore up plans to make southern China a global technology hub during the trip. He is scheduled to deliver an address on Wednesday, the official Xinhua News Agency said. China will take cooperation between Shenzhen and Hong Kong to a “higher level,” Xinhua reported earlier, without offering more details.

“Investors are optimistic on further reforms and upgrades for Shenzhen, which are expected to drive foreign capital inflows and enhance the tech sector,” said Patrick Shum, director of investment management at Tengard Holdings Ltd.

Eoin Treacy's view

After imposing its security regime on Hong Kong, China now needs to do whatever it can to prevent an exodus of capital from the enclave. Efforts to boost the number of listings in Hong Kong’s stock market are already underway. Further developing the region and integrating Hong Kong into the wider Guangdong economy appears to the next step.

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