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BIZCHINA / Center

Regulator to ease limits on domestic investments to HK

(Dow Jones)
Updated: 2007-06-25 11:26

A view of the Hong Kong skyline from the Peak is seen in this May 30,
2007. The China Banking Regulatory Commission will soon relax existing
regulations on overseas investments by domestic investors to Hong Kong.
[Reuters]

The China Banking Regulatory Commission will soon relax existing
regulations on overseas investments by domestic investors, The Standard
reported Monday, citing a mainland source.

The Standard, citing the source, said the mainland regulator will soon
allow domestic investors to invest about 70 percent of their funds in
Hong Kong stocks, up from the current limit of 50 percent, under the
Qualified Domestic Institutional Investor (QDII) program.

Related readings:
QDII program has limited impact on A-shares
QDII expanded to include securities, fund companies
HSBC Bank will roll out expanded QDII plan
Bank: BOC plans to launch new QDII fund

Hong Kong is so far the only market approved for overseas investments
under the QDII scheme.

The minimum amount of money required for an investor to buy a product
under the program will drop to less than 100,000 yuan (US$13,130) and
could be as low as 10,000 yuan, the newspaper said.

The new minimum investment represents a dramatic drop from the previous
entry fee of 300,000 yuan for a single investment, it said.

There have been discussions to allow trust funds to be included in the
scheme, the source told the newspaper, without specifying the parties
involved in the talks.

(For more biz stories, please visit Industry Updates)

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