QDIIs told to shed holdings of HK stocks
Updated: 2007-12-06 14:48
The securities regulator asked fund companies that apply for qualified domestic institutional investor (QDII) products to lower the proportion of Hong Kong stocks in their investment portfolios, Guangzhou Daily reported, citing an unidentified source.
These institutional investors were told to invest less in the Hong Kong stock market, which had been on a blistering rise but suffered an unprecedented drop of 1,526.02 points, or 5.01 percent, to end at 28,942.32 on Monday. State-owned enterprises (SOE) led the fall.
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The regulator had approved a QDII quota of US$42.17 billion by the end of September. Some US$16.1 billion of the quota went to the commercial banking sector, while US$19.5 billion went to five mutual fund companies and the remaining US$6.57 billion to 14 insurance firms. To date, institutional investors have made a total of US$10.86 billion worth of QDII investment.
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