The Chinese markets rallied with strength yesterday after an agreement was reached between the Chinese and Hong Kong regulators to allow greater freedom...

Chris Weston

Pepperstone

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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Chris Weston
Head of Research
Pepperstone

Highly accomplished financial markets professional, with experience at a number of top-tier global institutions on both the buy and sell-side. A natural communicator with a strong ability to analyse macro-economic trends, capital flows and market...

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