​Investors Unwind Arbitrage Trades As HKEx, Shanghai Connect

Some investors in Hong Kong were seen unwinding arbitrage trades Monday, as equity trading commenced between the Hong Kong Exchange and the Shanghai Stock Exchange. William Stephens, head of synthetic equity and derivatives research at Deutsche Bank in Hong Kong, told EQDerivatives the trades were being unwound on profit taking, despite the expectation the program will likely mean greater correlations between the two exchanges going forward.