Stocks News
- Govt. may rein in HK stock investment plan
Date: 19-Nov-2007 Sources: (Shenzhen Daily)
THE government will let individual investors buy a smaller-than-expected amount of Hong Kong stock under a landmark direct-investment scheme starting next year, analysts and media reports said Friday.
HSBC analysts expect the Central Government to kick off the so-called 'through train' program, which will allow residents to invest directly in Hong Kong equities for the first time, to start in the second quarter and trigger US$27 billion of capital outflows in 2008.
But the Hong Kong Daily News reported that the planned scheme, which triggered the biggest weekly gain for the benchmark Hang Seng Index in seven years after it was unveiled Aug. 20, could start as soon as Jan. 1.
The newspaper quoted unidentified sources as saying the State Council had agreed initially to allow US$20-30 billion of funds to be invested through the scheme on a trial basis, with actual details to be announced Dec. 28.
Some analysts had estimated that the individual investor scheme could lead to as much as US$60 billion being poured into Hong Kong equities over six to 12 months.
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