The Securities and Exchange Commission and the China Banking Regulatory Commission signed an agreement today that will lay the groundwork to enable Chinese investors to buy and sell U.S. stocks and mutual funds. From MarketWatch:
Analysts said Chinese banks may not be in much of a rush to invest in the U.S., however.
“It’s significant in the sense that, in the long run, Chinese money will invest in the U.S., but this is just part of the ongoing process,” said Lan Xue, Citigroup’s head of China research in Hong Kong.
“The actual implementation will be long and slow,” said Gartmore’s Awdry. …
Because of the appreciation in the yuan, stress in the U.S. financial sector and the upcoming U.S. presidential election, Chinese banks might not exhibit such a great appetite for U.S. equities. …
