Home Stock & Shares China allows insurers to invest in Hong Kong stocks via link

China allows insurers to invest in Hong Kong stocks via link

by Jonathan Adams

China has opened up a new channel for insurers to invest in Hong Kong equities.

Insurance funds are now allowed to buy the city’s shares through an exchange trading link with Shanghai, the China Insurance Regulatory Commission said in a statement on its website, without saying when the funds could start using the link. The increased access will help the companies boost investment returns, it said.

The move comes less than a month after officials dropped the overall quota for mainland investors to buy stocks in Hong Kong and approved the opening of a second link via Shenzhen, while retaining daily limits. Insurers are allowed to invest up to 15 per cent of their assets in overseas markets including Hong Kong, which they can currently do through a different program.

This article is for information purposes only.
Please remember that financial investments may rise or fall and past performance does not guarantee future performance in respect of income or capital growth; you may not get back the amount you invested.
There is no obligation to purchase anything but, if you decide to do so, you are strongly advised to consult a professional adviser before making any investment decisions.

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