The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site. Please see our Subscription Terms and Conditions.

All material subject to strictly enforced copyright laws. © 2022 Euromoney, a part of the Euromoney Institutional Investor PLC.

Hong Kong: Through train is delayed by signal failure

Hong Kong investors have become happily addicted to China’s flip-flop attitude to the so-called "through train" programme, under which mainland investors will in theory be allowed to buy stocks listed in the former UK colony.

China’s bank regulator, Liu Mingkang

Liu Mingkang has suggested the through train is on the wrong tracks

The plan was first launched in August by Beijing’s FX regulator, Safe. Hong Kong stocks predictably soared, on the expectation that the local bourse would soon be flooded with capital from China’s estimated $2.7 billion household savings. A few weeks later, China’s bank regulator, Liu Mingkang, said that he didn’t much like the idea of Chinese capital leaving the country, suggesting the "through train" was on the wrong tracks.

Oddly, Hong Kong stocks soared some more, clearly suggesting that local investors thought he must be having them on. In the 10 weeks from Safe’s announcement to November 2, the Hang Seng index had managed to jump 54%, ending that day at an all-time high of 31,361. The next day, the through train jumped the tracks, after Chinese premier Wen Jiabao suggested that the plan would probably be delayed. Stocks plummeted, falling to below 28,000. At that point, Hong Kong Exchanges and Clearing chairman Ronald Arculli leapt predictably into the fray, throwing out transport clichés left, right and centre.

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.


Unlimited access to and

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually


Unlimited access to and, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors


Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree