Stock Connect tipped to hit cap on launch day

Northbound trading through the Shanghai-Hong Kong Stock Connect is tipped to hit its daily quota cap when the scheme starts today after Chinese authorities granted a tax waiver late last week for international investors buying A-shares. Doubts had been raised that the Stock Connect programme would start with a bang, chiefly because of inconsistent tax treatment between the two markets. International institutions and asset managers had been expected to adopt a wait-and-see approa…