Since Hong Kong and Shanghai officially launched the Stock Connect, or “Through Train” link late last year, the move has seen more flows of money into the Chinese Mainland than into Hong Kong. To redress that sort of imbalance, Charles Li Xiaojia said fund managers are pushing for changes.

Many mainland funds do not have mandates to invest outside the mainland and so cannot take part in the cross-border link, he was quoted by the South China Morning Post as saying.

“Mainland funds not investing in the stock connect scheme is one of the reasons for the weak southbound investment,” said Li. When this obstacle is removed, southbound investment will improve,” he said.

The link is one of a number of measures that are seen as ways in which China is opening up its financial markets to outsiders, while also boosting the renminbi as an international currency.

Li was speaking after co-hosting with HKEx chairman Chow Chung-kong the market opening ceremony for the first trading day of the Year of the Goat, the report said.