| Wen Wei Po: Hedge funds pour into Hong Kong under HK-Mainland Stock Connect |
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2016
10-31
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to List Against the backdrop of China’s falling stock market, tightened housing policy and continued RMB depreciation, Chinese investors have started seeking overseas investment opportunities. Recently,an increased number of fund managers have applied and hold SFC licenses, according to the statistics. Wei Li, the Executive Vice President of OP Investment Management Ltd, believed the HK-Mainland Stock Connect will prompt the influx of hedge funds into the Hong Kong market, which provides more opportunities for the industry.
Wei Li commented in an interview that investors formerly were more willing to invest in A-share as the Chinese stock market has a higher return compared to global markets. However, China’s economic growth starts to slow down, and the changes urge investors to allocate assets to a safer place such as USD denominated assets. “They will transfer capital overseas and convert them into dollars”, said Li. Since HK dollar is pegged with US dollar, many Chinese institutional and individual investors will choose Hong Kong to establish funds or allocate assets.
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