Bourse link plan to boost capital inflows

Linking the stock exchanges of Shanghai and Hong Kong will boost foreign capital in those markets and give them more say in the pricing of Chinese equities, an analyst said.

Chen Li, chief China equity strategist with UBS Securities, said in a conference call on Wednesday that over the long term, foreign capital will account for nearly 10 percent of the free-float market capitalization of China's A-share market.

This would be one result of Shanghai-Hong Kong Stock Connect, a pilot program designed to allow mutual stock market access for investors on the Chinese mainland and Hong Kong.