In the name of liberalization, the Chinese government has been trying to inflate a stock market bubble to mask the ongoing deflation of her credit (property) bubbles along with the deterioration of her domestic economy.
Now the Chinese government will facilitate the easing of money flows into stocks via Hong Kong.
From Reuters:
Hong Kong will scrap the daily 20,000 yuan ($3,264) conversion limit for residents from Monday when a landmark scheme to link the city's stock market with Shanghai is launched, facilitating investment flows into China's stock market.Regulators said this week the cross-border share trading scheme would start on Monday, a crucial step in China's efforts to open its capital markets and to allow Hong Kong residents to choose from a wider menu of yuan-denominated assets apart from bonds."The removal of the daily conversion limit will facilitate Hong Kong residents' participation in the Shanghai-Hong Kong stock connect as well as other investments and transactions denominated in the yuan," Norman Chan, chief executive of the Hong Kong Monetary Authority, told reporters.
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