Fidessa Steps into China

Tech vendor Fidessa has reported a number of its key broker clients have transitioned smoothly to the new Shanghai-Hong Kong Stock Connect link.

It says nine of its clients, including China International Capital Corporation Hong Kong Securities, CIMB Securities, Guotai Junan Securities (Hong Kong), ICBC International Securities, and Standard Chartered Securities, have successfully integrated this channel into their business through Fidessa.

“Fidessa made the decision to invest in the technology needed to support China Connect from day one,” says Phil Jeffrey, regional sales director, Asia Pacific, Fidessa.

“And we’ve been working in partnership with our clients since then to develop the tools needed to successfully trade the Shanghai A-Share market.”

Stock Connect, which went live on November 17, opens up access to mainland Chinese stocks to overseas investors, and vice versa, for the first time. However, whilst the first day of trading was busy, volumes immediately plummeted.

Most of the trading went Northbound into China with little interest from Chinese investors trading in Hong Kong listed stocks.

“Whilst it is difficult to predict how this new channel will be used and how it might grow, the view is that this has the potential to be transformational,” adds Jeffrey.