The Chinese markets rallied with strength yesterday after an agreement was reached between the Chinese and Hong Kong regulators to allow greater freedom...
The Chinese markets rallied with strength yesterday after an agreement was reached between the Chinese and Hong Kong regulators to allow greater freedom between investors domiciled in these countries to take part trade in each other share markets. Under the scheme Chinese mainland investors will now be able to trade up to $1.7 billion a day in Hong Kong equities, while investors with a Hong Kong broker account will be able to trade in the CSI 300. Expect the Hang Seng and H-shares index to do nicely out of this deal, especially as the turnover and liquidity should improve significantly. Once again, China is highlighting it is committed to accelerating the pace of capital account liberalisation and the 3% level of foreign ownership in its domestic market should increase significantly over the next five years or so.
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