Asia Pacific: Plus ca change

Author: | Published: 23 Feb 2017

China's State Administration of Foreign Exchange (Safe) shocked Hong Kong and mainland Chinese investors by recently allowing onshore PRC investors to participate in Hong Kong IPOs raised by Chinese companies as cornerstones – provided that they agree to a number of conditions.

Among these are the obligations to repatriate the proceeds onshore when they reduce or exit their position in the listed company, and be subject to an FX quota.

That being said, this change marks a shift from the decade-long regime, the Qualified Domestic Institutional Investor (QDII) scheme,...