Individual investors from the Chinese mainland are likely to be
able to start trading in Hong Kong shares next month, the
Shanghai Securities News reported on Thursday.
There is little chance the government will launch the scheme
this month as many issues need to be improved, the newspaper cited
an unnamed authoritative source as saying.
The project could begin as early as the week after the National
Day holiday that lasts from October 1 to 7, the source added.
The State Administration of Foreign Exchange announced on August
20 that mainland individuals would be able to trade directly in HK
shares through the Tianjin branch of Bank of China amid efforts to
reduce the country's huge foreign exchange reserves and excessive
liquidity.
Zhu Min, vice president of BOC, has said the preparations have
gone smoothly, but it has taken some time to test the settlement
system and educating investors in the risks.
The People's Bank of China is yet to introduce anti-money
laundering measures for residents trading in HK shares, the
newspaper said.
Industrial and Commercial Bank of China, China Construction
Bank, Bank of Communications and China Merchants Bank have also
filed applications to conduct the business.
(Xinhua News Agency September 13, 2007)
