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Komfie Manalo, Opalesque Asia:

Only a few or less than one-third of Hong Kong’s long-only fund managers are using the Shanghai-Hong Kong Stock Connect more than two months after its much-publicized launch in November. The link was designed to provide easy access for international investors in China’s equity markets.

A survey by the Hong Kong Investment Funds Association (HKIFA) has found there are fewer European investors who are using the program, with only a few funds from Luxembourg that were given access. European investors are still not jumping into the program despite efforts by the Chinese government to fast track its application process, reported the Financial Times.

Surprisingly, long-only fund managers are continuously seeking individual quotas to buy A shares under the Qualified Foreign Institutional Investor (QFII) and Renminbi QFII (RQFII) programs. In December last year, more than $1bn QFII quotas were approved by the Chinese government to foreign institutional investors.

According to the report, several unresolved issues, including the role of clearing houses, vague rules on beneficial ownership and enforcement of shareholders rights, are hampering the Shanghai-Hong Kong Stock Connect program.

However, many insiders believe that once these issues have been resolved within the next......................

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