Hong Kong shares open higher after China expands QDII program
Hong Kong – Share prices opened higher, extending their record-breaking run as China expanded its qualified domestic institutional investor (QDII) scheme to allow more investments overseas.
China announced yesterday that under new rules effect on July 5, mainland brokers and fund managers will be allowed to invest client funds in overseas fixed-income, equity and derivative securities.
Until now, only banks and insurance companies have been eligible for the QDII program, which was introduced to encourage more capital outflows from China to ease domestic liquidity and yuan appreciation pressure.
Dealers said the broadened QDII scheme has led to hopes of more fund inflows into Hong Kong and helped investors shrug away a downturn on Wall Street overnight.
The Hang Seng Index opened up 99.45 points or 0.46 pct at 21,784.12.
China Mobile and other mainland telecom stocks led the early gains.
Copyright Fund China 2009.
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