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Quota imposed for HK investments

A quota will be imposed on mainland investments in the Hong Kong stock market, with no limits on individuals but tight controls on the total amount, said China Banking Regulatory Commission (CBRC) chairman Liu Mingkang, the Financial Times reported. The limit is to remain in place until the State Administration of Foreign Exchange (SAFE) reassesses market activity, he said. Liu did not disclose what the quota will be, but it is now believed that the total amount that will be invested in the Hong Kong stock market will be significantly lower than the original estimate of US$100 billion over the next year. The so-called "through train" scheme, allowing mainland residents to trade on Hong Kong's market through accounts at Bank of China in Tianjin, was announced on August 20 but has seen delays over disagreements among different regulatory agencies. The government is considering restricting the plan to residents of the big cities of Tianjin, Shanghai, Beijing and Shenzhen, said JPMorgan China equities chief Jing Ulrich.

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