HKEx is working on investor education to bridge
differences between mainland and HK markets.
Domestic Investors showed great interest in investing in Hong Kong financial market.
Hong Kong Exchanges and Clearing Ltd (HKEx) has not yet decided on a timetable for domestic direct stock investment in Hong Kong and is currently focusing on investors' risk education, said an official with HKEx yesterday.
Domestic investors will have to wait until the Hong Kong market fully opens to the mainland, said Lawrence Fok, executive vice president of HKEx Issuer Marketing Division, at the 2007 Annual Conference of China's Financial Market.
HKEx is working on investor education to help bridge differences between the Chinese mainland and Hong Kong stock markets. He added the market is confident in the direct Hong Kong stock investment program.
The program has greatly impacted the Hong Kong stock market. Following the announcement of the pilot program, the Hang Seng Index rose to around 30,000 from 20,000 points and has only fallen slightly ever since.
Li Jing, China head of JP Morgan Chase, also attended the annual conference. She said the direct Hong Kong stock investment program is likely to be postponed till 2008.
However, she didn't believe that was bad news, saying the sudden descent of green mainland investors could cause capital to flood in, potentially harming the Hong Kong market. She said the QDII (qualified domestic institutional investor) should still play the main role in ensuring a stable current of capital influx.
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v Pilot spot: Tianjin Binhai New Area |
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v Amount limit: 50,000 U.S. dollars annually |
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v Qualified Agents: Bank of China's Tianjin branch or Bank of China International Securities in Hong Kong |
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v Products: stocks traded in Hong Kong Exchanges and Clearing |
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v Capital origin: self-hold or purchased foreign exchange |
About QDII
QDII (Qualified Domestic Institutional Investors) is an investment scheme that works opposite the QFII (Qualified Foreign Institutional Investor). It is a scheme under which domestic institutional investors authorized by the government could invest in the overseas capital markets under the foreign exchange control system in China.
QDII was initially proposed by the Hong Kong government to introduce mainland capital to the Hong Kong securities market and to attract more international capital, which was significant to the low-priced Hong Kong securities market after the Asian financial crisis.
China prepares for residents' direct investment in HK shares Sep, 13,2007. China has finished at least half of the preparations for the local residents' direct investment in Hong Kong stock market, Zhu Min, vice president of Bank of China.
HK welcomes mainland's decision in HK securities Aug, 21,2007. The pilot scheme announced by China's State Administration of Foreign Exchange (SAFE) for mainland individuals to invest directly in securities in Hong Kong has met with warm welcome in Hong Kong.
China's First QDII Fund Launches Services Nov,13,2007.
China's first qualified domestic institutional investor (QDII) fund, managed by Hua An Fund Management Co.,Ltd., has begun operating, the firm announced Friday.
Time is not right for HK direct investments Oct 12, 2007
"Express train to the Hong Kong Exchange" ,originally scheduled in September ,has now been delayed and guesses abound about its initiation.
JPMorgan's China Fund JV Aims for $1 Bln QDII Fund Aug 13, 2007. JPMorgan's China fund management joint venture said on Monday it aims to raise $1 billion for its first overseas investment fund under the country's Qualified Domestic Institutional Investor (QDII) scheme.
1. Bank-of-China
2. Industrial and Commerical Bank
3. Bank of East Asia(Mainland Branch)
4. Bank of Communications
5. China Construction Bank
6. HSBC(Mainland Branch)
7. China Merchants Bank
8.China Citic Bank
9. Hangseng Bank(Mainland)
10.Citibank China
11. Industria Bank
12.Standard Charterd China
13.China Minsheng Bank
14. Everbright Bank
15.Bank of Beijing
16. Hua An Fund Management
17.Ping An Insurance
18.Credit Suisse(China)