HONG KONG, Oct 27 – Shares of Hong Kong Exchanges and Clearing have tumbled by as much as 5% to a six-month low after a landmark scheme to connect it with Shanghai’s stock market was delayed indefinitely. Hong Kong’s benchmark Hang Seng Index also fell by more than 1% because of uncertainty around the postponement. The Hong Kong-Shanghai Stock Connect is viewed as one of the biggest market developments in China for decades.
However, HKEx said it had not received the “relevant approval”. “There have been market expectations that Stock Connect will commence its operation in October 2014,” HKEx said in a statement on Sunday. “The parties are technically ready to implement Stock Connect. However, at the date of this announcement, HKEx has not received the relevant approval for the launch of Stock Connect, and there is no firm date for its implementation.”