An equity trading link between Hong Kong and Shanghai has opened, in a scheme that allows Hong Kong investors to buy stocks in mainland China and vice versa. The Shanghai-Hong Kong Stock Connect links the stock exchanges in Hong Kong and Shanghai, and is a pilot project that has daily limits on how much money can flow between the two financial centres. The daily quotas are expected to be increased in phases as China gradually opens up its capital account and internationalises the use of the renminbi. However, the Financial Times reported that on the first day of trading investors in China showed little interest in buying shares in Hong Kong. Meanwhile the Stock Connect received interest from foreigners seeking to take advantage of China's opening up of its capital markets.
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