Goldman expects the shift to Hong Kong primary listings by a flurry of Chinese companies including Alibaba to attract US$30 billion

The joint effort by the mainland and Hong Kong securities regulators to cut the number of days unavailable for Stock Connect trading is another potential catalyst for Chinese stocks, Goldman said.

That may spur index compiler $MSCI Inc(MSCI.US)$ to raise the inclusion factor of the stocks to 30% from 20% at present, drawing an additional inflow of US$23 billion, it said. However, that is not a base scenario for Goldman, as MSCI has yet to start such a proposal.

At the same time, Goldman estimates mainland investors will buy US$45 billion of Hong Kong stocks next year. It expects the shift to Hong Kong primary listings by a flurry of Chinese companies including $BABA-SW(09988.HK)$ and $BILIBILI-W(09626.HK)$ to attract US$30 billion over the next few years.
Alibaba, which filed for a primary listing in Hong Kong last month, will probably be accessible to mainland traders by the end of the year, Goldman said.