Stocks News
- HK submits proposal for stock plan
Date: 14-Dec-2007 Sources: (Shenzhen Daily)
HONG KONG has submitted a proposal to the State Council for mainland individuals to buy shares directly on the city's stock market, paving the way for a pilot program that has been plagued by repeated delays.
The program would be introduced after the proposal's approval, Hong Kong Monetary Authority Chief Executive Joseph Yam said Thursday. There was no timetable yet, he said, speaking at a press briefing on the sidelines of a conference in Beijing.
The government Aug. 20 said mainland individuals would be able to buy Hong Kong equities directly for the first time through an initiative known as the through train. Hong Kong's Hang Seng Index has surged 31 percent since then, prompting Premier Wen Jiabao to say Nov. 3 that the government needed more time to assess the risks to the city's financial system.
'The through-train program poses risks for the stock market, and investor interests must also be protected,'' Yam said. 'These are risks that can be managed, and managed effectively.''
Conditions for mainland individuals to invest directly in Hong Kong stocks should be arranged as soon as possible, Yam said.
'The mainland needs more domestic funds to flow overseas in order to seek higher returns,'' Yam said. 'But opening the capital account will not be simple and will require coordination between foreign exchange regulators. I hope to see these issues smoothed out as soon as possible.''
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