The half opening of Hong Kong stocks is expected to landing SSE starting upper 3 billion

Xinhua Beijing, June 20, according to the Hong Kong "Wen Wei Po" reported, since the mainland and Hong Kong last month, signed Cepa Supplementary agreement Six (CEPA7) explicitly mentioned that "actively study the introduction of Hong Kong equities portfolio in the mainland," "Trading open-end Index Fund", known as "the half of the opening of Hong Kong　　To the Shanghai listing, that is to bring unlimited speculation market. Fang Xinghai, Director-General of Shanghai Financial Services Office, said 19th that as Cross-border ETF cooperation advanced, it is expected that the initial possible form will be in the QFII and qdii framework, and may choose a fund management company to support.　　He also revealed that the initial size will not exceed 3 billion yuan (renminbi, the same below). Speaking at a high-level Hong Kong media delegation 19th, Mr Fang was the first to analyse the possible forms of the HSI ETF, which is supported by a fund company with the qualifications of both domestic and foreign transactions.　　But he said there was no specific timetable for when the index ETF would land on the Shanghai Stock Exchange. Mr Fang predicted that the initial level of the index ETF should be small, and that the future size would change with market performance, presenting a "dynamic" process.　　He Wenlio, managing director of the Law Hing Exchange Trading Fund market, hopes that if mainland investors are to be enthusiastic about ETFs in the future, the central authorities can consider relaxing the qdii restrictions or grant more quotas. According to Liu Jindong, deputy general manager of the Shanghai Stock Exchange, the most likely way is to allow the IPO fund to buy the HSI component shares at the qdii quota. At present, the mainland fund company's qdii quota between hundreds of millions of to billions of U.S. dollars, which may also be Mr Fang said the index ETF initial scale difficult to exceed 3 billion reasons. But two agreed that the amount should be sufficient to meet the initial demand for the development of the HSI ETF.　　He had previously disclosed that 4 fund companies are now reporting plans to develop cross-border ETFs. In addition, there is another technical issue with the Index ETF listing in Shanghai-the lack of a short selling mechanism in the mainland and the difficulty of arbitrage by ETF managers.　　In this respect, Chenhong, deputy general manager of Shenzhen Stock Exchange, explained that the mainland-listed index ETF, unlike the international practice, would be used for over-the-counter purchase to enhance control over premium or discount rates. Although the CEPA7 did not mention the cross listing of listed companies in Hong Kong and Shanghai, the expectation that the speed of the "semi-opening of HK stocks" would be speeded up still gave the market a vision. Fang Xinghai said 19th that the listing of trade cooperation has not yet entered the real stage. But he said, "as the RMB international exchange continues to advance, the two sides of the stock cross listing is a more reasonable thing."