A Shenzhen-Hong Kong Stock Connect is expected to be announced soon. The mutual recognition of funds agreement, effective from July, will allow fund managers registered in Hong Kong to offer investment fund products to mainland residents (and vice versa).
From an Australian perspective, these avenues should provide an opportunity for Australian banks, asset managers and their clients to increase their exposure to the Chinese domestic financial market. Australian international portfolio investment has been growing strongly over recent years from around $ billion in 2010 to over $ billion at the end of 2014 (Graph 3).