Here Comes the Mutual Fund Money

Barron's: China Launches Another Connect, For Mutual Funds: Stocks To Benefit
An estimated 110 funds in Hong Kong are eligible, and in China, 1157 funds are allowed to participate in the new Connect, officially termed Mainland Hong Kong Mutual Recognition of Funds.

It is unlikely this mutual fund Connect will have a broad-based impact on market liquidity. Just like the stock connect, the initial flow is likely limited. Mutual funds need time to set up their distribution and marketing channels, and retail investors also need time to get educated on the new products, noted Goldman Sachs.
I expect brand names and discounted shares will be the most likely to benefit.

No comments:

Post a Comment