Are China A-shares due to drop off a cliff?

Ironically, reforms such as the QFII scheme are causing the stock markets to wilt. The government must act fast to replace incumbent listed companies with better ones if the markets to regain some vibrancy.

The news that the Chinese government has finally giving the green light for the Qualified Foreign Institutional Investor scheme after months, if not years, of debate, is striking. This is especially so put in the context of the far-reaching laws passed in the last couple of months. These finally open up previously non-tradable state shares to mergers and acquisitions by both domestic and foreign companies. Hence the historic acquisition of a 20% stake in the Shenzhen Development Bank by Newbridge Capital and the investment in Ping An insurance company by HSBC.

Whether the latest QFII move is a good-bye gift from premier Zhu Rongji, a sign of the growing power of the reformist China...

FinanceAsia has updated its subscription model.

Registered readers now have the opportunity to read 5 articles from our award-winning website for free.

To obtain unlimited access to our award-winning exclusive news and analysis, we offer subscription packages, including single user, team (2-10 users), or office-wide licences.

To help you and your colleagues access our proprietary content, please contact us at subscriptions@financeasia.com, or +(852) 2122 5222

Article limit is reached.

Hello! You have used up all of your free articles on FinanceAsia.

To obtain unlimited access to our award-winning exclusive news and analysis, we offer subscription packages, including single user, team (2-10 users), or office-wide licences. To help you and your colleagues access our proprietary content, please contact us at subscriptions@financeasia.com, or +(852) 2122 5222