Advertisement
YOU ARE HERE: LAT HomeCollectionsInvestments

China to lift Hong Kong restriction

August 21, 2007|From Times Staff and Wire Reports

China said today that it would let citizens invest directly in the Hong Kong stock market, a move that will broaden options for savings-rich Chinese and help Beijing offset massive capital inflows from its trade surplus and foreign investments.

The news added more fuel to Hong Kong and Shanghai stock markets, extending a rally triggered by the Federal Reserve's cut Friday in a key lending rate.

China has long restricted capital outflows, but with foreign reserves of more than $1.3 trillion, officials have begun to loosen barriers.

"Many will see this as a green light to take advantage of cheaper valuations on offer for Chinese shares listed in Hong Kong," said Jing Ulrich, chairman of China equities at JPMorgan Chase & Co.

The Hang Seng index rose as much as 3.2% in trading this morning.

Advertisement
Los Angeles Times Articles
|
|
|