Date
16 December 2017
Laura Cha has emphasized the need for risk management in the cross-border stock trading program.
Laura Cha has emphasized the need for risk management in the cross-border stock trading program.

Laura Cha says risk management vital in through-train

Laura Cha, chairman of Hong Kong’s Financial Services Development Council, has stressed the importance of risk management and financial system security in the cross-border “through train” stock trading program.

Investors’ funds must go and come in the same way in the stock market, and the money should not be allowed to be used for investment in other channels such as property, Sing Tao Daily quoted Cha as saying. The safeguards are needed to prevent the renminbi funds from running helter-skelter, she said.

She also said that security watchdogs in the mainland and Hong Kong will keep an eye on financial intermediaries like brokers and banks.

If the market response to the scheme is good and if the program is managed in a safe and efficient manner, the 550 billion yuan (US$88.14 billion) quota may be relaxed in the future, Cha said.

But for now, the focus should be on steering the program well in the stock market.

Cha said the through-train scheme is very meaningful to Hong Kong as it can give more renminbi investment choices to investors.

– Contact HKEJ [email protected]

JH/JP/RC

 

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