China to limit local investments in Hong Kong stocks
China will impose limits on the amount of money local investors can spend on Hong Kong stocks, an official said Friday, suggesting the city will not see the wave of funds originally expected.
By Agencies |
BEIJING: China will impose limits on the amount of money local investors can spend on Hong Kong stocks, an official said Friday, suggesting the city will not see the wave of funds originally expected.
The announcement is the latest modification to a plan to let private investors buy directly into the Hong Kong stock market, which triggered initial expectations that the city would be flooded in liquidity.
"There will be investment limits for the scheme," Xia Lingwu, a spokesman with the China Banking Regulatory Commission, told the media.
Liu Mingkang, the chairman of the commission, told the paper there would be a "quota in general" which might be reassessed later, once it had been reached.
"They can lift and readjust the quota if necessary and appropriate -- it's a flexible ceiling," Liu said.
The State Administration of Foreign Exchange announced last month that mainland residents could invest an unlimited amount in Hong Kong stocks under the pilot scheme.
But the plan, designed to ease excessive liquidity in China and give people a wider choice of investments, has since been steadily adjusted.
The respected business magazine Caijing reported Monday the plan would initially be open just to residents of Tianjin, where the scheme will undergo the first trial runs.
The number of institutions handling the investment scheme, currently limited to the Bank of China and Bank of China International, will also be expanded, it reported.
Delays in implementing the programme have triggered speculation that powerful government agencies opposed it, but the banking regulator denied that the programme was in direct jeopardy.
The announcement is the latest modification to a plan to let private investors buy directly into the Hong Kong stock market, which triggered initial expectations that the city would be flooded in liquidity.
"There will be investment limits for the scheme," Xia Lingwu, a spokesman with the China Banking Regulatory Commission, told the media.
Liu Mingkang, the chairman of the commission, told the paper there would be a "quota in general" which might be reassessed later, once it had been reached.
"They can lift and readjust the quota if necessary and appropriate -- it's a flexible ceiling," Liu said.
The State Administration of Foreign Exchange announced last month that mainland residents could invest an unlimited amount in Hong Kong stocks under the pilot scheme.
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But the plan, designed to ease excessive liquidity in China and give people a wider choice of investments, has since been steadily adjusted.
The respected business magazine Caijing reported Monday the plan would initially be open just to residents of Tianjin, where the scheme will undergo the first trial runs.
The number of institutions handling the investment scheme, currently limited to the Bank of China and Bank of China International, will also be expanded, it reported.
Delays in implementing the programme have triggered speculation that powerful government agencies opposed it, but the banking regulator denied that the programme was in direct jeopardy.
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