Capital control grip tightens
AS CHINA tightens its grip on capital controls, one statesanctioned haven from a weakening yuan is drawing attention. Mainland investors will turn to buying Hong Kong stocks through crossborder exchange links as other ways of purchasing overseas assets become more difficult. An increase in flows would provide a boost to a stock market that has trailed global peers over the last four years, he said. Policy makers stepped up measures to stem outflows as the yuan suffered its worst annual loss against the US dollar in more than two decades, including requiring extra documentation from individuals converting yuan and blocking the use of Chinese bankcards to buy insurance products in Hong Kong. As a high-profile part of President Xi Jinping’s pledge to integrate China’s financial markets with the world, the Shenzhen and Shanghai bourse links aren’t facing the same threat.