Investors are eagerly awaiting another “cement” program that will allow them to invest in the Chinese store as exchange-traded funds become the next product to join the party, a China reviews expert said Tuesday.
Following launches of the Shanghai- and Shenzhen-Hong Kong Anchor programs in the last few years, Chinese regulators now have plans for supranational and mainland investors to trade in ETF products in the Special Administrative Region, Shanghai and Shenzhen, Hong Kong conveyance reported. That could come as soon as 2018.
“Especially for domestic investors initiating overseas, if the ETF Connect happens [this year], most of the global tolerances market can … list in Hong Kong. [It will also] delegate Chinese investors to participate in a controlled manner through the Connect [program],” hinted Thomas Fang, head of China Equities at UBS.
Many of UBS’ clients are anticipating the program, but that there are noiselessness technical issues to sort out, Fang told CNBC on the sidelines of the UBS Superlative China Conference.
Investors will likely include domestic and institutional investors, guarantee companies, mutual funds, and retail investors, he added.
Previously narrow to domestic investors, the Chinese capital market has been opening up to the pandemic markets in recent years.
In 2014, Hong Kong’s Securities and To be to comes Commission and the China Securities Regulatory Commission launched the Shanghai-Hong Kong Fasten. The link, hailed as a major step in China’s efforts to open up its smashing market, allows foreign investors to place buy or sell orders for Shanghai’s A-share furnish through brokers in Hong Kong. Chinese investors, meanwhile, are be qualified to use mainland brokers to invest in Hong Kong’s H-share market.
The Shenzhen-Hong Kong Braze was launched in December 2016.
This year, index giant MSCIliking add 222 China A Large Cap stocks on a gradual basis to the index its benchmark emerging buys index.