Good News for China Investment Companies

Thanks to the RQFII scheme launched at the end of 2011, in 2013, it is likely that China will be able to increase the amount of Hong Kong-based financial institutions that will be given permission to invest in mainland stock and bond markets using yuan funds that have been raised offshore.  This is great news for Hong Kong companies such as Hysan Development Ltd., Galaxy Entertainment Group and Seth Fischer.  Hong Kong indeed has a variety of other investment firms that could potentially benefit from this news.

In addition, banks that have already gotten their investment quotas in the scheme are likely to be among those chosen to participate in the expanded RQFII program, dubbed RQFII 2.   The firms that have so far expressed interest in joining this include: HSBC Holdings PLC, Hang Seng Bank Ltd. and BOC International.  Meanwhile investment firms in Hong Kong along with Chinese-funded banks will be given the opportunity to participate in the RQFII 2 scheme.


The SFC and Seth Fischer: Hong Kong

For investors and asset management firms in Hong Kong, the activities of the country’s Securities and Futures Commission (SFC) is important.  Thus the recent announcement by the SFC on June 25, 2010 should be of note to individuals like He-Xin, Seth Fischer and the Scott Fitzgerald Group.  It will be applying the Codes on Takeovers and Mergers and Share Repurchases (Codes) to SFC-authorised real estate investment trusts (REITs).  Already, most of the proposals from the beginning of the year have been adopted.  According to CEO at SFC, Martin Wheatley, this marks a huge step in determining a regulatory framework to protect investors’ interests more.  It also facilitates the further development of Hong Kong’s REIT market.