Jan. 4 (Bloomberg) -- China Securities Index Co. will start an index tracking Hong Kong, China and Taiwan stocks this month.
The Shanghai-based company will introduce the CSI Cross- Straits 500 Index on Jan. 18, according to a statement on its Web site. The measure will include companies on the CSI 300 Index, CSI Hong Kong 100 Index and 100 stocks from Taiwan, according to the statement.
“It’s useful as an observation benchmark but I don’t think it’ll be widely used at the beginning,” Phillip Chan, Hong Kong-based research director at Shenyin Wanguo HK Ltd., said by phone. “There is obviously a problem in trading the index given the heavy restrictions on both overseas and China investors.”
China limits overseas investments in its local-currency stocks to $30 billion under a so-called qualified foreign institutional investor program. Chinese investors can only buy overseas stocks through funds sold by approved domestic financial institutions.
China Securities Index, a joint venture between the Shanghai and Shenzhen stock exchanges, introduced the CSI Hong Kong Index in May 2008 to track shares listed on the city’s bourse.
Source: Bloomberg
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