China's play for foreigners: rules could turn funds into ones that actually invest in the mainland

Article Abstract:

China's new regulations encouraging private companies to list on the stock market are seen to boost the performance of China-related mutual funds and to entice foreign investors to buy into Class B shares. It is a widespread belief among fund managers that the selection of listed companies in the country is not attractive, as these often have inefficient operations, are poorly managed and less responsive to market development. Thus, China funds tend to allocate their investments to Taiwan and Hong Kong companies than those in the mainland. With China's new rules that allow private companies to list on the market and reduce stamp duties on Class B-share deals to 0.3%, foreign investment in Chinese companies is seen to increase.

China, Government regulation (cont), Administration of General Economic Programs, Investment Incentives to Foreign, Foreign investments, Laws, regulations and rules, Stock-exchange, Stock exchanges, Economic policy, Investments, Mutual funds, Investment incentives

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Investors take precautions

Article Abstract:

The good performance of the Asian stock markets 21 months since the financial crisis hit the region has not diminished the cautionary principles used by big fund managers when it comes to dealing with Asian stocks. Previous bad experiences with firms with misleading financial statements has taught fund managers such as Mark Mobius of Templeton Asset Management Ltd to be more selective in buying. This approach has been beneficial to the region's blue-chip firms but it also highlights the continued lack of long-term confidence in the Asian markets.

Evaluation, Column, Securities, Securities industry, Asia

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