(Nov 21): Stock investors left 76 percent of the Shanghai-Hong Kong exchange link’s quotas unfilled during the first week of trading, with some saying it may take months for cross-border flows to accelerate.

Investors used 28.3 billion yuan ($4.6 billion) of the 117.5 billion yuan combined quota available in Shanghai and Hong Kong from the Nov. 17 debut through today. They filled 39 percent of the limit for Shanghai shares and 6.1 percent for Hong Kong, according to data compiled by Bloomberg.

Buying in both markets has slowed since the program’s debut, with analysts citing high share prices and untested trading rules among reasons for disappointing volumes. Mirae Asset Global Investments (HK) Ltd. predicts it may take two months for more money managers to participate as they set up trading and compliance systems, while Bocom International Holdings Co. says the yearlong wait for a jump in usage of China’s so-called RQFII program for international funds may provide a guide for the bourse link.

“Transaction volume is substantially lower than what many people have thought,” said Hao Hong, a managing director for research at Bocom in Hong Kong. “Once we get to an acceleration phase it will pick up very quickly. We’re just not there yet.”

Teething Issues

Expectations had been running high, with the Shanghai Composite Index surging 18 percent since the link was announced in April through last week. Hong Kong Exchanges & Clearing Ltd. jumped 41 percent in the period to lead gains on the Hang Seng Index amid bets the link would boost trading volumes. The stock has since dropped 10 percent, while the Hang Seng Index fell 2.7 percent this week. China’s benchmark rose 0.3 percent.

The link allows any global investor with an account at a participating Hong Kong brokerage to buy a selection of Shanghai shares, with the daily quota set at 13 billion yuan. Mainland traders with at least 500,000 yuan in their accounts are eligible to purchase as much as 10.5 billion yuan of Hong Kong shares daily through the connect.

The program is part of China’s effort to open up its capital account, increase global use of the yuan and turn Shanghai into an international financial center. The quota system, which caps aggregate net purchases at 300 billion yuan in Shanghai and 250 billion yuan in Hong Kong, allows China to retain some control over cross-border trading.

“I don’t think institutions are participating,” Rahul Chadha, the co-chief investment officer at Mirae Asset Global, said in a Nov. 19 interview in Hong Kong. “We’re also struggling with operating issues, putting things in place. As people get comfort from the fact that there are no teething operational issues, then it becomes an on-tap window to buy good companies in China.”