The Chinese government’s unexpected announcement in August that mainland Chinese investors would be allowed to access Hong Kong’s stock market without restriction sent the Hang Seng index through the roof.
While China’s capital account has remained closed, restrictions on individual remittances overseas mean that burgeoning Chinese savings have been largely stuck in low-interest-bearing deposit accounts. What international portfolio investment has been made hitherto has largely been in the form of the somewhat anaemic qualified domestic institutional investor...
