国产热热热精品,亚洲视频久久】日韩,三级婷婷在线久久,99人妻精品视频,精品九热人人肉肉在线,AV东京热一区二区,91po在线视频观看,久久激情宗合,青青草黄色手机视频

Business / Markets

Stock Connect set to buoy use of more financial instruments

By Emma Dai (China Daily) Updated: 2014-10-23 07:38

Apart from OTC derivatives targeting private banks, synthetic securities such as participatory notes and equity swaps will also find clients among global funds, said CLSA Ltd, a local securities house focusing on institutional business.

"P-notes are probably going to be the biggest derivative arrangement written from the sell side to the buy side on the back of Stock Connect," said Andrew Maynard, global head of trading and execution at CLSA.

Synthetic securities are combinations of securities that represent the properties of yet another security, which may not itself exist.

P-notes are synthetic structures that brokers write to allocate some of their quota to clients such as investment funds that are finding it difficult to acquire their own quotas. P-notes can also be used to bypass regulatory restrictions and avoid settlement problems.

Though Stock Connect will provide much easier access to Shanghai-listed stocks than the QFII and RQFII programs, P-notes are expected to be in demand, because global investors are wary of Chinese settlement rules and often unfamiliar with currency controls, said Maynard.

Northbound trading through Stock Connect is to be settled in offshore yuan, which are known as CNH in the currency markets.

"The problem is a lot of global custodians are not able to settle or hold securities denominated in CNH. It's not a convertible currency and there are only five offshore centers for it," he said.

"Equity investors are not familiar with the Chinese capital market, which is relatively new. The system has not been set up and due diligence has never been done properly. Besides, when you add the settlement scenario, pre-delivery requirements and different time zones, people would find Stock Connect too complicated."

Many investors are requesting P-notes, Maynard said. "I imagine swaps and P-notes would probably make up one-third of foreign activity going in (through Stock Connect). That's the same ratio of people using their own QFII quotas versus using our firm's QFII quota to invest in the mainland market right now.

Stock Connect set to buoy use of more financial instruments

Stock Connect set to buoy use of more financial instruments

Stock Connect delay worries investors  Hedge funds wait for green signal to ride 'through train' 

Previous Page 1 2 Next Page

Hot Topics

Editor's Picks
...
...
福安市| 莱芜市| 米脂县| 库伦旗| 大洼县| 扎鲁特旗| 大竹县| 罗甸县| 会泽县| 昭平县| 三门峡市| 蓝山县| 邵武市| 克什克腾旗| 灵璧县| 乌兰察布市| 盖州市| 哈密市| 乐昌市| 开原市| 保山市| 城口县| 辽宁省| 普安县| 吕梁市| 万宁市| 乡宁县| 南川市| 巴里| 启东市| 泾源县| 南乐县| 西吉县| 海宁市| 东乡族自治县| 习水县| 依兰县| 确山县| 明星| 红安县| 盐池县|