Market corrections against a backdrop of political interference have thrown China's liberalization off course, says a Shanghai-based fund.
With the latest mechanisms failing to stem a sharp market sell off, China may call a halt to policies intended to open up markets to foreign investors.
"The latest circuit breakers have not had the intended effect, but rather made things worse," said Martin Lockstrom, Chairman and Chief Investment Officer of QuantCore, a systematic trading shop based in Shanghai, speaking to Finance Magnates. "In other words, there are currently no signs of reverting to the previous liberalization path."
The Shanghai Composite index has fallen 17.5% since 22nd December 2015, which is not quite bear market territory, noted brokerage firm SP Angel, while this week started off with a sell off in equity markets as both the Shanghai and Shenzhen indices fell 5.3% and 6.6%, respectively. The correction has rattled global markets.
Chinese officials had been showing willingness to continue opening up mainland markets, through domestic partnerships for commodities trading, for example, and via the Hong Kong-Shanghai Stock Connect link.
I don’t expect any foreign institutional investors to make any inroads in the foreseeable future
But as markets begin another week with a sharp correction, how these policies and mechanisms continue to unfold is in question.
So far, scrutiny has sharpened on the financial markets watchdog, China Securities Regulatory Commission (CSRC), and its chairman, Xiao Gang, according to CNBC. Gang was already facing internal criticism from the ruling Communist Party for his handling of the stock market crash in July and August last year, according to sources cited by CNBC, and since the most recent policy reversal, online media have given him the moniker 'Mr Circuit Breaker”.
“The root cause seems to be too much involvement of political forces, and even disagreement between different government bodies," Lockstrom added.
"Considering the current situation, I don’t expect any foreign institutional investors to make any inroads in the foreseeable future."
Along with opening up markets for trading, China has quota-based programs allowing foreign institutions to invest in A-share markets via USD or other foreign currency (QFII), or through offshore RMB (RQFII). Participants include most of the world's largest banks such as Goldman Sachs, BNY Mellon, BNP Paribas, and Credit Suisse, among others.
With the latest mechanisms failing to stem a sharp market sell off, China may call a halt to policies intended to open up markets to foreign investors.
"The latest circuit breakers have not had the intended effect, but rather made things worse," said Martin Lockstrom, Chairman and Chief Investment Officer of QuantCore, a systematic trading shop based in Shanghai, speaking to Finance Magnates. "In other words, there are currently no signs of reverting to the previous liberalization path."
The Shanghai Composite index has fallen 17.5% since 22nd December 2015, which is not quite bear market territory, noted brokerage firm SP Angel, while this week started off with a sell off in equity markets as both the Shanghai and Shenzhen indices fell 5.3% and 6.6%, respectively. The correction has rattled global markets.
Chinese officials had been showing willingness to continue opening up mainland markets, through domestic partnerships for commodities trading, for example, and via the Hong Kong-Shanghai Stock Connect link.
I don’t expect any foreign institutional investors to make any inroads in the foreseeable future
But as markets begin another week with a sharp correction, how these policies and mechanisms continue to unfold is in question.
So far, scrutiny has sharpened on the financial markets watchdog, China Securities Regulatory Commission (CSRC), and its chairman, Xiao Gang, according to CNBC. Gang was already facing internal criticism from the ruling Communist Party for his handling of the stock market crash in July and August last year, according to sources cited by CNBC, and since the most recent policy reversal, online media have given him the moniker 'Mr Circuit Breaker”.
“The root cause seems to be too much involvement of political forces, and even disagreement between different government bodies," Lockstrom added.
"Considering the current situation, I don’t expect any foreign institutional investors to make any inroads in the foreseeable future."
Along with opening up markets for trading, China has quota-based programs allowing foreign institutions to invest in A-share markets via USD or other foreign currency (QFII), or through offshore RMB (RQFII). Participants include most of the world's largest banks such as Goldman Sachs, BNY Mellon, BNP Paribas, and Credit Suisse, among others.
Institutional FX Demand Continues to Climb in April
Network, Learn, Grow | FMAS:24
Network, Learn, Grow | FMAS:24
Get ready to mark your calendars for FMAS:24, returning this May! Take a quick glimpse of what awaits at the Sandton Convention Centre in Sandton, South Africa from May 20-22, 2024.
Don't miss out on this 5-second invite packed with energy and urgency!
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
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Get ready to mark your calendars for FMAS:24, returning this May! Take a quick glimpse of what awaits at the Sandton Convention Centre in Sandton, South Africa from May 20-22, 2024.
Don't miss out on this 5-second invite packed with energy and urgency!
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
📣 Stay updated with the latest in finance and trading!
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Here's a sneak peek into the FMAS:24 vibrant atmosphere! Join us at Africa’s premium financial event for a transformative experience that combines the best of finance and technology.
From May 20-22, 2024, the Sandton Convention Centre in Sandton, South Africa, will be the hub for over 3,500 attendees to engage in unparalleled networking opportunities, learn from over 150 industry-leading speakers, and explore innovations from 120+ exhibitors.
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates. Connect with us today:
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Don't miss out on our latest videos, interviews, and event coverage. Subscribe to our YouTube channel for more!
Here's a sneak peek into the FMAS:24 vibrant atmosphere! Join us at Africa’s premium financial event for a transformative experience that combines the best of finance and technology.
From May 20-22, 2024, the Sandton Convention Centre in Sandton, South Africa, will be the hub for over 3,500 attendees to engage in unparalleled networking opportunities, learn from over 150 industry-leading speakers, and explore innovations from 120+ exhibitors.
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
📣 Stay updated with the latest in finance and trading!
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Join 3500+ Attendees at FMAS:24 | Africa's Premium Financial Event
Join 3500+ Attendees at FMAS:24 | Africa's Premium Financial Event
Looking to expand your network in #Africa? Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
📣 Stay updated with the latest in finance and trading!
Follow Finance Magnates for news, insights, and event updates across our social media platforms. Connect with us today:
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Looking to expand your network in #Africa? Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
📣 Stay updated with the latest in finance and trading!
Follow Finance Magnates for news, insights, and event updates across our social media platforms. Connect with us today:
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Join 3500+ Attendees at FMAS:24 - Africa's Premium Financial Event
Join 3500+ Attendees at FMAS:24 - Africa's Premium Financial Event
Looking to expand your network in #Africa?
Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
Looking to expand your network in #Africa?
Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
Where the Prop Trading Industry Goes from Here | Finance Magnates Podcast
Where the Prop Trading Industry Goes from Here | Finance Magnates Podcast
Explore the tumultuous world of prop trading in this Finance Magnates podcast episode, featuring insights from Head of Axi Select, Greg Rubin.
We're discussing the challenges and shifts caused by MetaQuotes' pivotal decisions affecting MT4 and MT5 users, and how Axi Select offers a unique, realistic path to professional trading, steering clear of traditional prop firm pitfalls.
Tune in for expert analysis on the future of trading and innovative funding models.
The Axi Select programme is only available to clients of AxiTrader Limited. CFDs carry a high risk of investment loss. In our dealings with you, we will act as a principal counterparty to all of your positions. This content is not available for AU, NZ, EU and UK residents. For more information, refer to our Terms of Service. Standard trading fees apply.
This content is provided solely for general informational purposes and should not be construed as financial product advice or an investment recommendation. It has been prepared without considering your personal circumstances.
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Explore the tumultuous world of prop trading in this Finance Magnates podcast episode, featuring insights from Head of Axi Select, Greg Rubin.
We're discussing the challenges and shifts caused by MetaQuotes' pivotal decisions affecting MT4 and MT5 users, and how Axi Select offers a unique, realistic path to professional trading, steering clear of traditional prop firm pitfalls.
Tune in for expert analysis on the future of trading and innovative funding models.
The Axi Select programme is only available to clients of AxiTrader Limited. CFDs carry a high risk of investment loss. In our dealings with you, we will act as a principal counterparty to all of your positions. This content is not available for AU, NZ, EU and UK residents. For more information, refer to our Terms of Service. Standard trading fees apply.
This content is provided solely for general informational purposes and should not be construed as financial product advice or an investment recommendation. It has been prepared without considering your personal circumstances.
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Follow Finance Magnates for news, insights, and event updates across our social media platforms. Connect with us today:
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