Stock Connect tipped to help RQFII ETF firms
CSOP Asset Management's head trader expects the planned Shanghai-Hong Kong trading link to attract greater volumes to the Shanghai Stock Exchange and reduce issues over liquidity.
The pending Stock Connect scheme will boost China A-share market liquidity and thus avert certain issues, says Dominic Ho, head trader at CSOP Asset Management, the Hong Kong unit of Shenzhen's China Southern Fund Management.
Trading A-shares for some of the highest-volume exchange-traded funds (ETFs) under the renminbi qualified foreign institutional investor (RQFII) scheme, Ho says the biggest challenge is managing market impact.
“For now, when we have a lot of ETF subscriptio…
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