China Securities Regulatory Commission chief Guo Shuqing said residents of Hong Kong, Taiwan or Macau living on the mainland will enjoy equal treatment to mainlanders when they invest in the A-share market.
Speaking on the sidelines of the annual session of the National People’s Congress yesterday, Guo elaborated on a new rule that will take effect on April 1.
Residents from the three regions would be able to carry out any transactions, including short selling, and their investments would not be subjected to any special quotas, he said.
“They will be able to enjoy whatever rights are enjoyed by mainland residents,” he said.
Asked if the new rule might fuel speculation by spurring an influx of funds from overseas, Guo said this was unlikely.
Under the new rule, all the funds put into investments must be yuan-denominated income earned by people on the mainland, he said.
HSBC Asia-Pacific chief executive Peter Wong Tung-shun said the new rules might attract some funds into the A-share market.
But Wong said he trusted that Hongkongers would make investment decisions after comparing returns with those available from the city’s stock exchange.
Last year, the mainland stock market gained about 3 per cent and was one of the world’s worst performers. In contrast, the Hong Kong market rose 22.9 per cent.
He Guangbei, the chief executive of Bank of China (Hong Kong), also said he believed people would not rush to pour money into mainland stocks.
“In recent years, the A-share market has showed big two-way volatility. Many investors haven’t earned a good return on stock investments and are likely to stay prudent,” He said.