Latest News:  
Beijing   Moderate rain    25 / 20 ℃  City Forecast

Home>>China Politics

Yuan trade settlements encouraged in SAR (2)

By Li Tao, Sophie He and Chen Jia in Hong Kong  (China Daily)

08:18, June 28, 2012

ETFs to get welcome

Meanwhile, the long-awaited issue of ETFs that track Hong Kong shares and those that are linked to A-shares are widely expected with an initial quota of 20 billion yuan each.

Analysts said that they don't believe the ETFs will be able to boost stock markets single-handedly. They said the move is more of a policy signal rather than a decisive factor for the markets.

Tse Kwok-leung, head of economics and policy research at Bank of China (Hong Kong), said he doesn't see the introduction of new ETFs stimulating the stock markets. The current stock market downturn is a result of a weak global economy, said Tse, adding that the recovery of the stock market needed to be backed by the recovery of the real economy.

But Tse believes investors from both the mainland and Hong Kong will be very interested in the approaching ETFs, "as they will provide a direct access to each other's bourse for stock trading".

Tse said although the actual initial scale of the ETFs is yet to be unveiled, the cooperation in financial markets between mainland and Hong Kong has always been step-by-step, and the scale will be expanded gradually.

The ETFs are expected to get a warm welcome by investors.

Ronald Wan, honorary chair professor at the Renmin University of China, also believes that Hong Kong branches of mainland brokerages will share the quota of A-share tracking ETFs. "They will have certain advantages in developing yuan-denominated products, due to their background," he said.

As for the joint ventures for stock exchanges in Hong Kong, Shenzhen and Shanghai, Chen Daofu, an economist at the State Council's Development Research Center, believes the collaboration could be in the areas of risk management, product design and trading system operation, which can change the current competition into a cooperative relationship.



【1】 【2】

Email|Print|Comments(Editor:张茜、姚春)

Related Reading

Leave your comment0 comments

  1. Name

  

Selections for you


  1. Chinese 3rd generation fighter: J-10 jet fighter

  2. Chinese Jade--Timeless Beauty

  3. Famous dancer performs Dream of the Red Chamber

  4. Int'l Day against Drug Abuse marked in Jakarta, Indonesia

Most Popular

Opinions

  1. 'Global effort needed to fight corruption'
  2. New welfare stock accounts' impact limited
  3. Leftover men to be a big problem
  4. A symbol of affluence or a trap of luxury?
  5. Premier's visit sign of close ties with region
  6. Property necessary pill for economy
  7. Chinese banks must go global
  8. Putin's visit to Israel more symbolic than strategic
  9. Syria's new government faces escalation of tension
  10. Trade is tool to fix global economy

What's happening in China

Film pioneer Chen Qiang dies at 94

  1. Rainstorms affect 378,600 in central China
  2. 2.96 bln yuan misused in affordable housing
  3. Latest food scare leads to milk recall
  4. China: Micro-charity faces credibility crisis
  5. Losses for listed firms, property sector

China Features

  1. US-Japan-ROK drills aim to fix alliance weakness
  2. Why Chinese listed companies withdraw from US?
  3. Dreams can challenge any depth, height
  4. How can traditional Chinese medicine earn trust?
  5. Eurozone should move forward or it will fall over

PD Online Data

  1. Spring Festival
  2. Chinese ethnic odyssey
  3. Yangge in Shaanxi
  4. Gaoqiao in Northern China
  5. The drum dance in Ansai