4Q16 launch of Shenzhen-Hong Kong Connect both signifies an easing ofcapital outflow concerns and provides international investors access to China’smost dynamic equity market. Access to A-share-listed private enterprises willjump by 4x. The inclusion of ETFs and minimum market capitalisationrequirements are the main positive and negative surprises, in our view. Weforecast a further 12% upside for China equities and highlight our top Hong Kongsmall-cap picks and Shenzhen A-share picks in this report.