SHANGHAI, Oct 18 (Reuters) - Chinese stocks closed more than 3 percent lower on Thursday, their biggest drop in five weeks, on news that Beijing was studying a proposal to permit the exchange of shares listed in both the domestic stock market and Hong Kong.
Such an arbitrage scheme could drag down the prices of domestic shares by shrinking the vast premiums, now averaging nearly 50 percent, of A shares over Hong Kong-listed H shares. regards gunawan yk
