Shenzhen Stock Exchange and Market Capitalization

global investors: Most of the stocks listed on the Shenzhen Stock Exchange have a market capitalization less than 2 billion dollars, but have posted faster earning growth than their large-cap peers listed in Shanghai, according to Xinhua China. Once the stock connect is launched, the investible market capitalization for global investors from information technology and consumer discretionary to healthcare will expand, adding opportunities for them to diversify Chinese equity holdings away from financial and manufacturing firms. The stock connect to the bourse in the southern Chinese boomtown Shenzhen offers global investors an opportunity to diversify into China tech and service companies, which has proved much more resilient to slowing growth in the world second-largest economy. "The Shenzhen exchange has a far more diverse mix of companies that reflects China new consumer and tech-driven growth prospects," said Gao Ting, head of China strategy at UBS Securities. Earning growth for Chinese mainland-listed companies in IT, healthcare and consumer discretionary stood at 35.1, 24.4 and 12.9 percent in the first three quarters of 2015, compared with 3.4 percent for manufacturing, and a decline of 64.1 percent and 55.5 percent for energy and materials, according to data compiled by researchers at Wind. The Shanghai-Hong Kong Stock Connect launched in 2014 has already provided investors in Hong Kong with a daily quota of 13 billion yuan to invest in shares listed in Shanghai. Average earning growth for listed companies on the Chinese mainland has moderated from 14.3 percent in 2013 to 3.2 percent in the first three quarters of 2015 along with China slowing economic growth. (news.financializer.com). As reported in the news.