Shanghai stock quota sees just 20% take-up on third day of link scheme

Investors look at a screen showing stock information at a brokerage house in Shanghai on Nov 17, 2014. Foreign buyers used only 20 per cent of their 13 billion yuan (S$2.76 billion) daily quota of Shanghai stocks on Wednesday, Nov 19, as demand
Investors look at a screen showing stock information at a brokerage house in Shanghai on Nov 17, 2014. Foreign buyers used only 20 per cent of their 13 billion yuan (S$2.76 billion) daily quota of Shanghai stocks on Wednesday, Nov 19, as demand for mainland shares cooled noticeably two days after a scheme connecting the Hong Kong and Shanghai markets debuted. -- PHOTO: AFP

HONG KONG, Nov 19 (Reuters) - Foreign buyers used only 20 per cent of their 13 billion yuan (S$2.76 billion) daily quota of Shanghai stocks on Wednesday as demand for mainland shares cooled noticeably two days after a scheme connecting the Hong Kong and Shanghai markets debuted.

Trading was sedate on Wednesday compared with Monday, when the full daily investment quota for Shanghai stocks was quickly taken up as international investors scrambled to get into mainland markets.

The Stock Connect scheme, which allows Hong Kong and Shanghai investors to buy and sell shares on each other's bourses, is the latest step towards opening China's tightly controlled capital markets.