Hong Kong and mainland China stock markets together can surpass New York and become the largest market in the world, thanks to the newly-launched cross-border equity investment scheme for individuals, according emerging markets guru Mark Mobius.
Mobius, executive chairman of Templeton Emerging Markets Group, said the new scheme oriented to individuals in Shanghai and Hong Kong will bring more choices to investors and boost transaction volume for both sides, the Hong Kong Economic Journal reported Wednesday.
The investment guru said he remains upbeat about the Chinese economy and that the nation can achieve its 7 percent growth target this year.
China is undergoing a revolution that will bring about an incredible influence, given Beijing’s pledge on economic reforms, including further opening-up of the financial markets, Mobius noted.
A more stringent oversight on lenders can ensure improvement in credit quality, while diverting private capital into the financial sector can induce competition that will result in a healthier development in the sector, he added.
The fund manager also holds a positive view on India, Indonesia, Thailand and Vietnam.
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