China’s securities regulator said on Friday it would let mainland mutual funds invest in Hong Kong shares via the Shanghai-Hong Kong Stock Connect.
The move may gave some support to the cross-border trading scheme, which has seen dwindling interest from investors.
Up until now, Chinese mutual funds have been able to invest in overseas markets only through the Qualified Domestic Institutional Investor (QDII) program, which requires regulatory approval.
Giving mainland funds access to Hong Kong shares via the Shanghai-Hong Kong Stock Connect will promote product and business innovation, and be good for steady development of the connect scheme, Deng Ge, spokesman for the China Securities Regulatory Commission (CSRC), told a news conference in Beijing.
The scheme, launched late last year, allows Hong Kong and mainland investors to invest in each other’s markets up to a daily quota.
Interest in the scheme has been waning. On Friday, mainland investors used only 5 percent of their quota for Hong Kong shares, while those in Hong Kong utilized only 2 percent of what they could buy on the mainland.
via Reuters
Content is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at info@marketpulse.com. Visit https://www.marketpulse.com/ to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.