Chinese investors to enter the U.S. market will be a new way

China's stock market not long ago from the top of glory came at the same time, the world's most populous country of the investors will receive the new channels, including the United States to enter the overseas market. Even so, do not count on the Dow Jones index in the near future there will be a Chinese-style bubble. According to the World Financial reports http://finance.icxo.com hearing, according to informed sources, as the Chinese investors to open the U.S. market on the latest measures, the United States Securities and Exchange Commission (SEC) over the next few days with the China Banking Regulatory Commission (CBRC) signed a Memorandum of Understanding to allow Chinese banks to launch the U.S. stock market investment of open-end funds. In the back of the agreement, it is a last 18 months quietly changes, that is, investment in overseas markets, the door has been given to 2,400,000,000,000 U.S. dollars deposits of ordinary Chinese people to open. U.S. Treasury Secretary Paulson (Henry Paulson) has been urging China to ease capital controls and allow the outflow of capital. China to guide financial planning to enter the U.S. market in June last year and in December at the Sino-US strategic economic dialogue has been in the brewing. Sino-US economic strategic dialogue is driven by Paulson set up bilateral dialogue mechanisms. China's brokerages, banks and fund companies have been introducing to domestic investors to invest a series of international stock and bond markets, or to reflect the market value of open-end funds and other investment products. The so-called qualified domestic institutional investor (QDII) mechanism is that overseas investors to enter the Chinese financial market, the first legal channels. In mid-2006, China's capital has been operating under strict control, individual investors will be almost impossible for the yuan convertible into dollars or other foreign currency, not to mention the overseas investment in the stock and bond markets. Today, China's ordinary people every year can exchange up to 50,000 U.S. dollars in foreign exchange, reflects the urgency of the Chinese government hopes to relax restrictions on capital outflow to offset the continuous inflow of capital. According to HSBC Holdings (HSBC Holdings PLC) estimates that more than 500 billion U.S. dollars of QDII products have been approved, with China's sovereignty ─ ─ investment fund China Investment Co., Ltd. (China Investment Corp.) Configuration in overseas markets 66,000,000,000 U.S. dollars of funds Has been compared to the more or less the same. Voted in last year's investment in a hundred Shi Group (Blackstone Group Ltd.) And Morgan Stanley (Morgan Stanley) have attracted much attention. The Business Advisory Co., Ltd. Ben (Z-Ben Advisors Ltd.) Director Peter • Alexander (Peter Alexander) said that the current situation is that China's retail investors will participate in the real world market. The company is headquartered in Shanghai, a fund industry consulting firm. The imminent signing of the Sino-US agreement will enable China's existing foreign investment channels expanded. Under the agreement, Chinese banks will be allowed to design their own U.S. stock investment funds, rather than the sale of the Fund's other institutions. In China, the bank's role is difficult to replace because the bank distribution network is the main platform for financial products. SEC has not yet, "the Wall Street Journal" on the matter respond to the questions raised. The CBRC was quoted a spokesman for the agency has issued a statement saying, CBRC has been with Hong Kong, Singapore and Britain signed a similar agreement soon with the United States, Germany and Japan to sign such an agreement. QDII, but the industry is facing a major disadvantage is that the Chinese individual investors to the U.S. or other overseas markets were not enthusiastic. In fact already introduced most of the QDII products were not sold out, many products have emerged impairment.