China Moves to Enable Individuals to Buy Hong Kong Shares
From Staff Reports
Beijing’s decision to allow individual mainland investors to trade directly in Hong Kong-listed shares could funnel tens of billions of dollars into the Hong Kong market over the next year and could help fuel an ongoing bull market in stocks, experts say.
Deutsche Bank AG (NYSE: DB) estimates the Monday policy shift, along with other recent initiatives designed to facilitate overseas fund flows, will channel $40 billion into Hong Kong-listed stocks before June. Prior to the rule change, Deutsche Bank had forecast $20 billion of mainland fund flows into Hong Kong during the 12-month period to June, MarketWatch reported this week.
"Technically it means all Chinese citizens now have a legal channel to invest in Hong Kong stocks," said Jun Ma, Deutsche Bank’s chief economist for Greater China, wrote in a research note. China announced Monday that individual investors would be able to directly purchase Hong Kong securities under a new program it is launching. Better still, investments under that program will not be hamstrung by a rule that limited individuals buying or selling shares in foreign exchanges to a total of $50,000 annually.
Peter Schiff: Why this Money Should Replace the U.S. Dollar
There’s a new universal currency, backed by solid gold. You can use it to make online purchases anywhere in the world. Converting some money to the new currency takes just 5 minutes. You can start with as little as $10… or as much as $10 million.According to CNBC star analyst and Euro Pacific Capital President Peter Schiff, this money could double the value of your savings – automatically – in just 6-9 months.
For Schiff’s full analysis and recommendations, please go here.
