Bloomberg – Hedge funds may drive initial demand for Shanghai-listed stocks through a linkage of the city’s bourse with that in Hong Kong, which opens up a new route for foreign investors to buy Chinese shares, according to Goldman Sachs Group Inc. (GS:US)
The link will tap into pent-up demand from hedge funds to buy yuan-denominated class-A shares traded in Shanghai, said Shane Bolton, head of Asia prime brokerage at the New York-based bank. Long-only managers may grapple with pre-trade requirements that are different from their usual practice at the beginning, he added.
