Chinese money spells danger for Hong Kong

27 Aug 2007

Last week’s announcement that Chinese retail investors will be able to invest in Hong Kong-listed shares for the first time will increase volatility in the Hang Seng Index.

After weeks of bad headlines, Asian equity traders desperately needed some good news. So when China’s foreign exchange regulator, SAFE, said it would allow individual investors in the PRC to buy shares in Hong Kong, buyers in the offshore territory took it as a cue to return to ...

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