Date
25 March 2017
Regulators in Luxembourg, Hong Kong and mainland China have resolved the legal aspects and other operating issues surrounding the use of the stock link, Camille Thommes says. Photo: paperjam.lu
Regulators in Luxembourg, Hong Kong and mainland China have resolved the legal aspects and other operating issues surrounding the use of the stock link, Camille Thommes says. Photo: paperjam.lu

Luxembourg funds show interest in Stock Connect

International funds have in recent months shown increasing interest in using Shanghai-Hong Kong Stock Connect as they invest in stocks listed in mainland China, the Hong Kong Economic Journal reported Monday.

Camille Thommes, director of the Association of the Luxembourg Fund Industry, said 69 funds structured using the Undertakings for Collective Investments in Transferable Securities and 12 other alternative investment funds have been given approval to invest in A shares through the stock link.

Over the past year, the Luxembourg financial regulator, Commission de Surveillance du Secteur Financier, has resolved with Hong Kong Exchanges and Clearing Ltd. (00388.HK) and the China Securities Regulatory Commission the legal aspects and other operating issues surrounding the use of the stock link, Thommes said.

Progress regarding the renminbi-denominated qualified foreign institutional investor (RQFII) scheme has, however, been relatively slow, he said. 

By the end of April, the People’s Bank of China had approved 50 billion yuan (US$7.71 billion) of quota for Luxembourg under the RQFII scheme, with the Luxembourg subsidiary of Bank of China Ltd. (03988.HK) and the European subsidiary of the Industrial and Commercial Bank of China Ltd. (01398.HK) being the only two banks qualified, Thommes said.

[Chinese version中文版]

– Contact us at [email protected]

VW/JP/FL

======================

International funds are increasingly interested in the use of Shanghai-Hong Kong Stock Connect in recent months as they invest in stocks listed in mainland China, the Hong Kong Economic Journal reported Monday.

Association of the Luxembourg Fund Industry director Camille Thommes said 69 of funds structured using the Undertakings for Collective Investments in Transferable Securities and 12 other alternative
investment funds have been approved to invest in A shares through the stock link.

The Luxembourg financial authority Commission de Surveillance du Secteur Financier has swiftly resolved over the past year with Hong Kong Exchanges and Clearing Ltd. (00388.HK) and China Securities Regulatory Commission regarding the legal aspects and other operating issues surrounding the use of the stock link, said the official of the representative body for the Luxembourg investment fund industry.

Thommes, however, said the progress in the renminbi-denominated qualified foreign institutional investor scheme is relatively slow.

As of the end April, the People’s Bank of China approved 50 billion yuan of quota under the RQFII scheme, with the Bank of China Ltd. (03988.HK) Luxembourg subsidiary and Industrial and Commercial Bank of China Ltd. (01398.HK) Europe subsidiary being the only two banks qualified.

[Chinese version中文版]

– Contact us at [email protected]

VW/JP

Hong Kong Economic Journal

EJI Weekly Newsletter

Please click here to unsubscribe