China’s regulators consider making it easier for its citizens to invest in Hong Kong’s booming IPO market. Limits on how much individuals can take out of the country will remain.
Davis Polk Welcomes Capital Markets Partner Jason Xu in Beijing apnews.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from apnews.com Daily Mail and Mail on Sunday newspapers.
China Investors Evade Capital Controls to Buy Hong Kong IPOs
Bloomberg 2/5/2021 Bloomberg News
(Bloomberg) It’s not hard to find reasons why cash is pouring into Hong Kong initial public offerings at a record pace: rock-bottom interest rates, frothy markets, pandemic boredom.
But one of the biggest factors behind the frenzy often goes overlooked: the growing willingness of Chinese investors to evade capital controls as regulators turn a blind eye.
Hong Kong IPOs are technically off limits to investors from mainland China, where annual foreign-exchange purchases by individuals are capped at $50,000 and residents must pledge they won’t put the money in offshore securities. While workarounds have existed for years, anecdotal evidence suggests their use has spiked in recent months as investors pile into hot new offerings from the likes of Kuaishou Technology.
Tencent-backed Kuaishou more than doubles in Hong Kong debut after $5 4 billion IPO netscape.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from netscape.com Daily Mail and Mail on Sunday newspapers.