Banking News
- ICBC launches yuan investment service in HK market
Date: 30-May-2007 Sources: (Xinhua Online)
The Industrial and Commercial Bank of China (ICBC) on Tuesday launched a service to help investors buy stocks in Hong Kong with mainland currency, a first step in widening overseas investment scope for domestic lenders.
Individual investors would be able to buy stocks, bonds and other financial products by entrusting their yuan-denominated assets to the ICBC, said a management official with ICBC, the country's biggest lender.
The service provided a wider channel for mainland Chinese to invest overseas and they could expect higher yields from the H-share market, said insiders.
On May 11, the China Banking Regulatory Commission announced that mainland commercial banks offering overseas wealth-management services could invest in a wider range of asset classes, including equities and equity funds authorized by a supervisory authority with whom the commission has a memorandum of understanding.
Securities and Futures Commission Chairman Eddy Fong said the move would result in a win-win scenario for both the mainland and Hong Kong.
Mainland investors would be able to enjoy a wider choice of investment products in Hong Kong, while benefiting from Hong Kong's existing asset-management industry, Fong said.
The ICBC rose 1.08 percent to 5.59 yuan on the Shanghai stock exchange on Tuesday.
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