(Yicai Global) Sept. 30 -- Institutional investors from overseas are becoming increasingly interested in entering the Chinese market as shares from the mainland make their way into international indexes, a source at HSBC Securities US told China Securities Journal.
Many want to better understand the local market, especially since the introduction of the new science and technology board in Shanghai, said An Shumei of the firm's Chinese business development department, referring to the Star Market that targets innovative startups. On the whole, American investors are enthusiastic about China consider it too big to be ignored, An added.
US investors are generally looking for the easiest way into China, An continued, saying many are looking for alternative routes into the world's second-largest economy, whose biggest city Shanghai is now one of the most recognized financial hubs on the planet. Many also await the repo market opening up to the private sector and others hope to see relaxed applicant requirements for the Qualified Foreign Institutional Investor scheme and its yuan-based sister program, the Renminbi QFII or RQFII.
Investors focused on the bond market are largely concerned about how they can hedge against yuan exchange rate risks, An added, saying hedge funds involved in both bond and stock markets want to know what short-selling tools are available to guard against risk.
Editor: James Boynton