Brokers wary of trading snags as China’s stocks go global

HONG KONG: China’s stock market will finally join MSCI Inc’s global indexes on June 1, but there are still some sticking points that worry brokers and could cause a trading upset.

Among the concerns are the Shanghai Stock Exchange’s lack of a closing auction – which index-tracking funds often use to get the day’s final price – and whether brokers have sufficient capacity with Hong Kong’s bourse to be able to send what could be as much as US$40bil worth of orders north, according to traders in the city.