China stock market inflows could double in 2019 – securities official

© Reuters. Man sits in entrance of an digital board exhibiting inventory data at a brokerage home in Hangzhou

SHANGHAI (Reuters) – The inclusion of Chinese language A-shares in world inventory indexes may see overseas inflows into China’s inventory market double in 2019, the Shanghai Securities Information quoted a prime Chinese language securities regulator as saying on Saturday.

“Final yr, internet overseas inventory market inflows reached 300 billion yuan ($44.38 billion) and this yr we estimate that inflows will improve additional. We may count on 600 billion yuan,” Fang Xinghai, vice chairman of the China Securities Regulatory Fee (CSRC), was quoted as saying at a market discussion board.

It didn’t say the place the discussion board was going down.

Fang mentioned that along with the Shanghai-Hong Kong and Shenzhen-Hong Kong Inventory Join programmes, the inflows can be pushed by a lift within the proportion of A-shares included in MSCI world indexes, in addition to the inclusion of A-shares in FTSE Russell and Dow Jones indexes.

Fang additionally mentioned that a lot of U.S., Japanese and European funding banks had utilized to boost their stakes in home brokerages to 51 p.c.

In December, UBS Group (S:UBSG) turned the primary overseas financial institution to win approval for a majority stake in a home securities three way partnership.

Fang mentioned that a number of overseas banks had expressed a hope to use to boost their stakes to 100 p.c as soon as permitted by rules, and that the CSRC would strongly help such a transfer.

China’s benchmark share indexes had been among the many world’s worst performing fairness markets final yr, dropping round 1 / 4 of their worth because the escalating Sino-U.S. commerce conflict put additional strain on the slowing Chinese language economic system. However shares have drawn some help over the past month on indicators of an easing in commerce tensions.

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