Chinese to allowed to invest in London and New York

Chinese to allowed to invest in London and New York
Dec 19, 2007 00:36
DREAMLIFE Points: Join Date: Sep 5, 2007 Status: offline	Recently, China has reached an agreement with UK financial regulator that Chinese commercial banks can invest in London shares and funds. Meanwhile, Chinese individual investors can buy QDII funds through these commercial banks to do investment in London. But it did not say when QDII funds can start investing in the UK. On the other hand, CBRC (China Banking Regulatory Commission) is soon to sign a similar agreement with US authorities. For Chinese individual investors, it is really good since they can invest in UK and US in the near future. Before, mainland investors can do their investment in Hong Kong stock market through legal channel. But Hong Kong stocks fluctuated in recent days. Perhaps, this encourages China to expand its QDII programme. The news said that the purpose is to "counter inflows from a record trade surplus that have driven up local stock and property prices".

Dec 19, 2007 00:36

DREAMLIFE
Points:
Join Date: Sep 5, 2007
Status: offline

Recently, China has reached an agreement with UK financial regulator that Chinese commercial banks can invest in London shares and funds. Meanwhile, Chinese individual investors can buy QDII funds through these commercial banks to do investment in London. But it did not say when QDII funds can start investing in the UK. On the other hand, CBRC (China Banking Regulatory Commission) is soon to sign a similar agreement with US authorities.

For Chinese individual investors, it is really good since they can invest in UK and US in the near future. Before, mainland investors can do their investment in Hong Kong stock market through legal channel. But Hong Kong stocks fluctuated in recent days. Perhaps, this encourages China to expand its QDII programme.

The news said that the purpose is to "counter inflows from a record trade surplus that have driven up local stock and property prices".

Dec 20, 2007 07:24	#1
APAULT Points: Join Date: Mar 11, 2006 Status: Offline	It's the last para that's important. The Chinese authorities understand the importance of a more balanced international flow of funds and investment, and perhaps the need to do just enough to appease western governments.

Dec 20, 2007 19:41	#2
JIMMYB Points: Join Date: Feb 7, 2007 Status: Offline	Quote: perhaps the need to do just enough to appease western governments. Well, Paul. It is true that this can appease western governments. Both EU and US complain that China has won too much trade surplus. But the more important is that China adopted this measure just for its own sake. Too much investments and funds have inflooded into Chinese domestic market and this is not good.

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