More than HK$300 billion is set to flow into the local bourse now that the mainland has opened the gates allowing individuals to invest in Hong Kong - and most investment banks predict that H shares will get a lift from the latest initiative.
On Monday the State Administration of Foreign Exchange said mainlanders will be allowed to invest in Hong Kong-listed stocks via the Tianjin branch of Bank of China (3988), paving the way for a multibillion-dollar influx of capital. The program will be extended to Shanghai next and the Industrial and Commercial Bank of China (1398) will be a designated bank, Reuters reported.
Morgan Stanley said the program will have a significant and positive impact on the Hong Kong market. However, it does not expect the scheme to ease pressure on the yuan to appreciate further....
From The Standard
