Stock Connect set to clear obstacle in EU

0 Comment(s)Print E-mail China Daily via agencies, December 4, 2014
Adjust font size:

Europe's main funds regulator has introduced a "fast-track" procedure for approving mutual funds that wish to participate in a landmark Shanghai-Hong Kong equity trading program.

The announcement, made by the Association of the Luxembourg Fund Industry on Tuesday, comes amid growing industry frustration over European regulatory hurdles that have prevented many asset managers from participating in the Shanghai-Hong Kong Stock Connect program.

Luxembourg's Commission de Surveillance du Secteur Financier will fast-track applications from mutual funds sold to retail investors, also known as UCITS, whose investment policy already permits exposure to China shares and which only need to adapt their existing paperwork, ALFI said.

The move will make it much easier in theory for many large institutional investors to use the Chinese stock link, although how many funds will benefit from the new process in practice is unclear.

More than 13,000 mutual funds are domiciled in low-tax Luxembourg and regulated by the CSSF, but only a small proportion of them have already invested in Chinese shares through cross-border investment programs known as QFII and RQFII.

Currently, the CSSF has approved one UCITS fund to use the Stock Connect and has just two other applications for it pending.

Sally Wong, chief executive of the Hong Kong Investment Funds Association, said she was analyzing the details of the announcement but said: "I reckon a large number of UCITS funds will be able to avail of this process".

A spokeswoman for ALFI could not provide details on timings for the fast-track process, adding funds would be assessed "case by case".

The Stock Connect program, launched on Nov 17, allows foreign investors to trade Shanghai-listed shares via the Hong Kong stock exchange, and mainland investors to buy Hong Kong shares via the Shanghai bourse.

But within a week of its launch, trading volumes had dwindled to less than 20 percent of the maximum allowance.

Last week, the CSSF's concerns about investor protection prevented most EU funds from participating, an earlier report said.

Market participants said the CSSF wants to ensure that Chinese shares EU investors buy through the link-up can be adequately monitored and recovered should the bank that guards the stocks-the custodian bank-or one of the exchanges, go bust.

The China trading program makes it tough for funds and custodians to fulfill these obligations, because Shanghai shares are physically held in China through an unusually complex three-tiered structure involving the custodian, the Hong Kong clearing house, and the Shanghai clearing house.

Follow China.org.cn on Twitter and Facebook to join the conversation.
Print E-mail Bookmark and Share

Go to Forum >>0 Comment(s)

No comments.

Add your comments...

  • User Name Required
  • Your Comment
  • Enter the words you see:   
    Racist, abusive and off-topic comments may be removed by the moderator.
Send your storiesGet more from China.org.cnMobileRSSNewsletter
主站蜘蛛池模板: selao久久国产精品| 久久国内精品自在自线软件| 男女一级毛片免费视频看| 国产一级一片免费播放视频| 国产99在线|亚洲| 国产精品成人久久久久久久| a拍拍男女免费看全片| 引诱亲女乱小说| 中文字幕日韩人妻不卡一区| 日韩在线免费视频| 果冻传媒和精东影业在线观看| 国产片xxxxa片国语对白| 999国产精品| 好男人社区神马www| 中文字幕免费在线观看动作大片| 好吊妞视频这里有精品| 久久精品国产99国产精品澳门| 欧美激情一区二区三区在线| 人夫的堕落变装| 精品一区二区三区免费毛片| 向日葵app下载视频免费| 色视频色露露永久免费观看 | 国产真实老熟女无套内射| 7777久久亚洲中文字幕| 国语做受对白XXXXX在线| WWW国产精品内射熟女| 天天躁日日躁狠狠躁性色AVQ| 一级一级特黄女人精品毛片视频| 房客(糙汉)何璐程曜坤| 丰满多毛的大隂户毛茸茸| 日本一本在线播放| 久久久久亚洲AV成人无码网站| 日韩欧美一区二区三区免费看| 九九九国产视频| 最近免费中文字幕中文高清| 亚洲一区爱区精品无码| 欧美jizz18性欧美年轻| 亚洲一区二区三区偷拍女厕| 欧美videosdesexo肥婆| 亚洲一卡2卡3卡4卡国产网站| 欧美jizzjizz在线播放|