| dezza, For a long time, mainland Chinese are not allowed to directly invest HK stock exchange, Nasdaq, NYSE or any other foreign exchanges. On the other side, foreigners are not allowed directly invest Shanghai/Shenzhen A-share stock also (Oh, there's B-share for them:) Recent years, Government seems is willing to allow more capital movements. It launched the Qualified Foreigners Institutional Investor (QFII) scheme for foreigners, and the Qualified Demotics Institutional Investor (QDII) scheme for demotics. Foreigners can invest A-share stock through QFIIs, meanwhile, demotics can invest stocks outside China through QDIIs. Of cause, there is no 'free' movement currently, there are still 'quotas' for QFIIs or QDIIs. That's the approach Government how to open the door between demotic and foreign markets. The changing is slow, while I'd like to think this door will eventually be removed, like other doors... |
Chinese Stock Market is Crazy