A clampdown by China on investor access to Hong Kong-listed businesses could make Hong Kong’s stock exchange a less attractive listing destination for Saudi Aramco and other foreign companies, according to finance professionals.
The Shenzhen and Shanghai stock exchanges caught the market off guard last weekend when they announced that mainland investors would not be able to buy Hong Kong-listed foreign businesses or companies with multiple share classes through Stock Connect, the trading link between China and Hong Kong bourses.
The mainland exchanges said that they made the decision in order to protect investors from buying shares that they did not understand.