Last week a delegation from Kazakhstan arrived in Hong Kong from Shanghai to meet stock exchange officials. The visit was part of their due diligence as the group, headed by the chairman of sovereign wealth fund Samruk-Kazyna, ponders where to list various assets.
Landing such a prize matters greatly for Shanghai and Hong Kong. These equity markets, once seen as complementary in the region, are competing more intensely with each other. Moreover, the Stock Connect trading schemes, meant to tie the markets more closely together at a time when China maintains capital controls, are no longer exclusive; Shanghai plans to connect with London as well.
In March, officials of the China Securities Regulatory Commission announced that they planned to introduce China Depository Receipts in an effort to attract the big mainland tech groups such as Alibaba, Baidu, JD.com and NetEase to list in Shanghai or Shenzhen.