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Markets

Hong Kong and China unite in stock market venture

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Opening sequence

Markets

Hong Kong and China unite in stock market venture

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COMING UP:Hong Kong and China unite in stock market venture

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Transcript

00:00:02
>> What's it going to take to breathe fresh life into China's sagging stock market? For a few short days this summer, it looked like markets might have been crawling back from a long and painful decline. Late on Tuesday, Hong Kong and mainland China officials announced a fresh program to connect Hong Kong's internationally accessible stock market with a southern Shenzhen exchange.
00:00:24
But investors are not exactly jumping up and down. I'm Reuters, Tara Joseph at the Hong Kong Stock Exchange. Officials are hoping that by linking Hong Kong and China exchanges, eager foreign investors will breathe fresh life into the markets. There's also a hope that major global industries will pick up China's stocks, adding their exposure to global funds.
00:00:47
Shenzen is the world's second busiest in tech heavy exchange with turnover of more than $1 trillion. Opening up the market to foreigners could entice players in, but there are still many barriers at play. Companies listed on the exchange are seen as both volatile and expensive. There's also concern that,the heavy hand of Chinese regulators could freeze the market at any time.
00:01:12
A painful precedent set when Shanghai market's crush last year. For now, China's stock performance continues to lag far behind other major global players. And experts warn it could still be some time before the world's second largest economy finds its second wind.