A Shanghai exchange official warns of hazards the scheme poses for A shares
After a flurry of mainland media reports last month that a launch of the qualified domestic institutional investor (QDII) scheme was imminent, official comment has suddenly turned cautious.
A commentary published on Thursday by Fang Xinghai, a deputy general manager of the Shanghai Stock Exchange, called for a go-slow approach on QDII, saying early implementation of the scheme could do irreparable harm to China's struggling equity markets.
Mainland financial analysts have chimed in with their own concerns over the scheme, which would allow mainland investors to invest directly in Hong Kong equities for the first time.
'Setting up a new mechanism and allowing large-scale funds into Hong Kong aren't really possible in the short-term,' Haitong Securities analyst Lou Wei said. 'Regulators would have to consider the interests of investors in the domestic A-share market.'
On Thursday, Mr Fang said discussions over implementing the scheme had reached an 'advanced and mature' stage but the pace of its launch should slow.
