Investors are expecting new connect program for the Chinese market

Published: Wilson Clark

On: Jan 2018

A China’s stocks expert told on Tuesday that the many investors are eagerly awaiting another connect program which is largely expected to allow them to invest in the stock market of China. Because the exchange traded funds renowned as the next product to join the party.

With the launches of the Shenzhen and Shanghai Hong Kong connect programs in the last few years, the Chinese coordinators have some plans for the international and domestic investors to trade in ETF products in the special administrative region which could come as soon as in the year 2018.

The head of China Equities at UBS, Thomas Fang said that, “We found that the domestic investors are specifically investing overseas, and if the ETF connect program begins this year, then the most of worldwide equities market can list in Hong Kong. It will also allow Chinese investors to take part in a controlled manner via the connect program.”

For China’s market investors are anticipating another connect program

Many of the clients of UBS are anticipating for the connect program, but there are some technical issues to sort out, told by Mr. Fang during the UBS Greater China conference.

He added that, investors will be expected to include domestic as well as institutional investors, mutual funds, retail investors and insurance companies.

The Chinese capital market which has been previously limited to only domestic investors, has now been gearing up to the global markets in the recent years.

The Securities & Futures Commission of Hong Kong and the Chinese Securities Regulatory Commission initiated the Shanghai Hong Kong connect in 2014. The link operated as a biggest step in China’s efforts to start up it’s capital market and even allows global investors to place buy or sell orders for Shanghai’s share market.

In December 2016, the Shenzhen Hong Kong connect program was launched. In 2018, index giant MSCI will likely to add 222 China A Large cap stocks on the basis of gradual in order to index its benchmark dawning markets index.