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China to allow cross-border investment between Hong Kong, Shanghai stock markets

Published on Apr 10, 2014 2:50 PM
 
A trader is seen at the stock exchange in Hong Kong on Thursday, April 10, 2014. China's securities regulator and its Hong Kong counterpart said on Thursday they would allow mainland investors to trade shares in designated companies listed in Hong Kong, while letting Hong Kong investors buy selected Shanghai-listed shares. -- PHOTO: AFP

SHANGHAI (Reuters) - China's securities regulator and its Hong Kong counterpart said on Thursday they would allow mainland investors to trade shares in designated companies listed in Hong Kong, while letting Hong Kong investors buy selected Shanghai-listed shares.

The China Securities Regulatory Commission (CSRC), in a joint statement with the Hong Kong Securities and Futures Commission, said the pilot scheme would be limited to companies already listed in both Shanghai and Hong Kong, as well as selected other blue-chip companies.

Trading volumes will be subject to overall and daily quotas, the agencies said in a statement published on the CSRC website.

"Allowing mutual investment in Shanghai and Hong Kong stocks is an important opening of China's capital markets," the statement said. "It will facilitate the connection of the capital markets of the two areas, promoting the bilateral opening of the capital markets, among other multiple positive factors."

 
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