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Chinese, overseas institutions build up stakes in A-shares

2018-11-23 19:24  Cfbond   Yin Lei

By Yin Lei

Institutional investors at home and abroad are building up their portfolios substantially at China’s A-share market, said a report of Shanghai Securities News on Friday.

Over the past 15 months, institutional investors abroad had displayed huge interest in the stock market at the Chinese mainland, as reflected in the number of special segregated accounts (SPSAs) opened at the Hong Kong Exchanges and Clearing Limited (HKEX) during this period.

The SPSAs, dedicated to overseas institutional investors, offer great convenience for them to trade Chinese mainland’s A-shares via the HKEX’s stock connect programs with the Shanghai Stock Exchange (SSE) and the Shenzhen Stock Exchange (SZSE).

For these investors, especially those with long-term interests, such an account has become almost indispensable.

“As of September 2018, investors had opened 6,363 SPSAs, a steep rise of 274 percent over the number of 1,700 in June 2017,” said Wei Zhen, head of China Research of the global market index provider MSCI Inc., at a financial forum held in southern China’s Shenzhen City on Friday.

The efforts since last year to further reform and open up the A-share market had been well received among overseas institutional investors, Wei said.

Institutional investors in the Chinese mainland are also piling up their stakes at the A-share market through exchange-traded funds (ETFs).

In the third quarter, the size of index funds in China had snowballed mostly thanks to large institutional investors, a signal that they have been making active investments via index funds like the ETFs, said Li Yimei, general manager of the Beijing-based China Asset Management Co., Ltd.

From July to September, index funds in China had grown to a total of 538.25 billion yuan (77.58 billion U.S. dollars), up by 49 billion yuan (7.06 billion U.S. dollars) from the second quarter. Among them, ETFs surged by 35.1 billion yuan (5.06 billion U.S. dollars) to 289.7 billion yuan (41.76 billion U.S. dollars).

责任编辑:Xie Fang
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