Chinese investors’ offshore appetite still ‘huge’ despite curbs on outflows, says Guotai chairman
Guotai Junan International’s chairman Yim Fung says new growth engine taking shape as company serves the demand for overseas investment
The appetite of mainland investors for US dollar-denominated assets is “huge” and offshore funds available for investment are growing despite curbs by Chinese authorities to stem capital outflows, Yim Fung, chairman of Guotai Junan International Holdings, told the South China Morning Post in an interview on Wednesday.
“The competition among mainland based brokerage firms is becoming more fierce, particularly for the securities brokerage business, as more players are consolidating or expanding their operation in Hong Kong,” Yim said.
On the other hand, the sentiment for trading equities has become more rational, particularly among mainland based investors, after the Chinese stock rout in the summer of 2015.
“Although the Shenzhen-Hong Kong stock connect kicked off last December, the inflows to small and mid-chips in Hong Kong from mainland investors is not as large as expected,” he said.
However, Yim said his company has found new growth engines and is working on developing services including financial products and debt securities.