Chinese open to buy H shares

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Last few days is full of events for China capital market, and the new generation of the Chinese investors (capitalist?). Last weekend the captialweek, a well known magazine for investors, celebrated its 15 years anniversary and the 18 years of China capital market. The following picture is the cover of latest “capitalweek” magazine published last Saturday.

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Yesterday, the Chinese goverment opens the gate of H-shares to ordinary Chinese citizen. In other words, from now on Chinese citizen can buy the stocks traded in Hongkong. There is some limitations at this initial stage (people in Tianjin felt a bit lucky), as right now only the Bank of China, Tianjin Binghai branch takes your money, and BoC international (the brokage arm of BoC) take your order (Petro China? China Mobile?).

Nonetheless, it’s a big step. Some people in Hongkong already worried about the potential increased volatility of H shares. Some people think the gap between A and H shares will narrow. If everything goes smoothly, we can expect more investment choices for Chinese in the near future. Maybe they can not only eat McDonald or KFC, they can buy the stocks as well 🙂

By the way, here is a work flow on how a Chinese individual investor buy the Hongkong stocks (from EastMoney, in Chinese).