Report: Capital rushing to HK stock exchange
Updated: 2007-10-10 11:33
As much as US$200 billion will go to the Hong Kong stock market within a year under a new investment plan from the mainland, according to a research report released Tuesday from BOC International.
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The report, composed by Luo Zhiheng, chief of the research department of BOC International, also expects that along with the "through-train" scheme, the Hong Kong stock market will also welcome US$50 billion from qualified domestic institutional investors (QDII) funds.
Money outflow from the above sources, together with the returns on red chip stocks, will result in a substantial amount of money contracted away from the domestic A-share market. The report forecasts the bullish trend to wane in the fourth quarter.
On the other hand, the report noted valuation of H-shares will benefit from the huge capital inflow from the mainland. Investment opportunities are sure to follow.
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