S B Warburg: trading in H-shares by mainland investors unfeasible in short term

Referring to the report that Hong Kong financial officials advised China Government to permit mainland investors to trade H-shares, an S B Warburg analyst believed that the proposal can¡¦t be implemented in the near future.

The analyst pointed out that it was a more feasible way to allow well-performing SOEs and overseas China-funded companies to issue Chinese depository receipt since the Mainland is reluctant to touch the capital regulatory issue. The possible move can not only reduce the hard-landing risk in A-shares market but enhance China¡¦s capital markets as well.

Related stock : (NIL)