Hong Kong Exchanges Clearing Ltd.

Hong Kong Exchanges Clearing Ltd.: Traders who want to sell Shanghai-listed shares must transfer the securities to a broker before 7:30 a.m. to comply with Chinese regulations, Charles Li, the chief executive officer of Hong Kong Exchanges Clearing Ltd. 388 and chairman of the firms equity bourse unit, wrote in a blog posting. The rule is more restrictive than the T 2 settlement system used in Hong Kong and other major stock markets, which allows traders to execute sell orders before transferring the securities, according to Business Week. Its not possible for Chinas stock market to relax all restrictions at once, said Castor Pang, the head of research at Core Pacific-Yamaichi in Hong Kong. Right now its making changes step by step. Market Constraints Investors using the Hong Kong-Shanghai exchange link to access Chinas $3.6 trillion stock market will have to play by mainland rules. Pressure is increasing on Hong Kong and mainland authorities to provide clarity on trading rules before the link, which will give foreigners unprecedented access to the biggest emerging stock market. While the system wont be perfect, the exchanges are pushing forward because the tie-up will help open up Chinas markets and boost Hong Kongs role as a global financial hub, according to Li. (news.financializer.com). As reported in the news.