From mint · · 1m 10s
Chinese Savers Now Access US Stocks Easily
Beijing opens regulated channels for Chinese investors to buy US stocks without offshore brokerage.
In brief
Beijing opens regulated channels for Chinese investors to buy US stocks without offshore brokerage. Chinese savers can now invest in US stocks through Beijing-approved funds, bypassing offshore accounts after property market losses. Originally reported by mint.
Chinese savers want US stocks
Chinese households seek investment options after property market losses and low bank deposit rates.
“Incremental Chinese demand can flow, indirectly, toward U.S. Treasuries, gold and large American technology companies.”
Beijing tightens offshore trading
Authorities crack down on unlicensed offshore trading routes while opening controlled channels to global funds.
“Beijing is cracking down on unlicensed offshore trading while opening controlled channels into global funds holding Nvidia, Amazon, Treasuries, and gold.”
Pictet fund grows rapidly
Pictet Strategic Income fund grew to $5.1 billion from $1.6 billion, with 60% from mainland Chinese investors.
“Roughly 60% of its assets now come from mainland Chinese retail investors through the Mainland-Hong Kong Mutual Recognition of Funds program.”
Mainland inflows surge
Pictet attracted HK$16.3 billion ($2.1 billion) in net mainland inflows during first half of year.
“In the first half alone, the fund attracted HK$16.3 billion ($2.1 billion), in net mainland inflows, the most among 34 funds tracked by Morningstar.”
Beijing expands mutual recognition
Beijing raised maximum share of Hong Kong funds sellable to mainland investors from 50% to 80% in 2025.
“Beginning in January 2025, regulators raised the maximum share of a Hong Kong fund that can be sold to mainland investors to 80% of assets from 50%.”
Regulators target illegal brokers
Regulators targeted overseas brokers like Tiger Brokers, Futu and Longbridge for soliciting mainland customers without licenses.
“Regulators have targeted overseas brokers that solicited mainland customers without Chinese licenses, including Tiger Brokers, Futu and Longbridge.”
Global asset managers benefit
Global asset managers gain access to China’s largest savings pool through regulated channels.
“Global asset managers gain access to one of the world’s largest pools of savings.”
In short
Chinese savers can now invest in US stocks through Beijing-approved funds, bypassing offshore accounts after property market losses.
