A gift to all investors for the 20th anniversary of Chinese Hong Kong

 Breaking News
  • Microsoft, Amazon and eBay are at record highs On Tuesday, securities of Microsoft Corp, Amazon.com Inc and eBay Inc broke records. The rush of investors’ demand for the shares of those companies involved in electronic commerce caused such...
  • Quarantine in Hong Kong is not for everyone Hong Kong is rescuing its stock exchange. In order to give life to the trading platform, the administration of the metropolis has shown flexibility concerning quarantine measures. So, Christopher Hui...
  • Economy of Japan demonstrates recession In the first quarter of this year, the economy of the Land of the Rising Sun dropped by 0.6% in monthly terms. The figures are not optimistic but are better...
  • Energy market news On Saturday, representatives of the countries included in the OPEC+ cartel managed to agree on the extension of the restrictions on oil production. It also became known that those countries...
  • Bentley fires employees in order to prevent losses in 2020 The Bentley brand has long been synonymous with luxury living. Unfortunately, the British automaker has to save because of a forced two-month break. The company’s CEO Adrian Hallmark said to...
A gift to all investors for the 20th anniversary of Chinese Hong Kong
July 03
08:00 2017

The Wall Street Journal published the information about the launch of the Bond Connect project. The project was expected by the investors around the world. Its essence lies in granting access to non-Chinese investors to the securities market of “big” China with a total volume of about 9 trillion US dollars.
This is another step taken by the official Beijing in order to liberalize the financial markets of the Celestial Empire. Bond Connect has been dedicated to the 20th anniversary of the transfer of Hong Kong under the jurisdiction of China. Earlier, stock bidding among Shanghai, Hong Kong and Shenzhen was launched. Being convinced that the scheme is working, the Central Bank of China approved the launch of the Bond Connect program two months ago.
Currently, there is one direction of trading that opens the possibility to foreign investors to manipulate Chinese securities without a trading account in “big” China. The launch date of the return channel (the possibility to investors from mainland China to trade securities) has not been disclosed to the public.
For the first half an hour of trading the Bond Connect program exceeded the amount of 300 million US dollars. According to Bloomberg, the first investors to enter the mainland China market were, for example, HSBC Holdings, Citigroup and Bank of China.
For your information, the normal amount of foreign investment in the domestic market of any country is considered to be 10%. At the moment, foreign investors manage only 1,5percent of securities.
According to analysts of the investment bank Goldman Sachs, the launch of the cross-border trade program with mainland China will attract to the country additional investments of at least a trillion US dollars.
Chinese sources say that the authorities approved 20 market-makers (those brokers who directly act as sellers or buyers of securities, assuming the risks of acquiring and storing securities on their accounts) within the program.

 

The material was prepared with the participation of  Andrey Majorov,
a leading analyst of the brokerage company CT Trade

Related Articles

0 Comments

No Comments Yet!

There are no comments at the moment, do you want to add one?

Write a comment

Write a Comment