The Hong Kong Stock Casino may face another problem if not a crisis. As the close tie between Mainland China and Taiwan is getting closer and closer, we will very soon be able to trade Chinese yuan in Taiwan. It's just a matter of time before full convertibility of Chinese yuan in Taiwan according to the news today.
With the wide opening of currency exchange between Mainland China and Taiwan, the listing of Mainland companies on the Taiwan stock exchange should be a definite trend or development of the close tie. You can look at what has happened to Hong Kong. "H" shares of Mainland companies could be listed in Hong Kong before the 97 reunification and I would expect similar trend of development for Taiwan now. Logically, if such trend is supported, Taiwan companies would seek listing or more listings in Shanghai and Shenzhen. The Hong Kong Stock Casino will then be isolated from Mainland and Taiwan listings.
A lot will depend on what our Central Government in Beijing may do. But whatever favorable policies our Central Government may adopt to benefit Hong Kong, the Hong Kong Stock Casino may soon have to survive under the shadows of the stock exchanges in Shanghai, Shenzhen and Taiwan.
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