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,...