A sudden drop in Chinese B shares causes concern about capital flight.
“There is market speculation that B shares can no longer be used as a tool to hedge against the yuan," said
Jackson Wong, associate director at Huarong International Securities
Ltd. in Hong Kong. The State Administration of Taxation last week
published rules requiring banks to perform due diligence on non-resident
financial accounts from 2017.
“We saw some unknown institutions’ heavy selling around 2 p.m.,” said William Wong, Hong Kong-based head of sales trading at Shenwan Hongyuan Securities Ltd. “It is very likely that some overseas investors want to move money out” after the new rules.
zerohedge.com/news/2016-10-17/shanghai-b-shares-unexpectedly-crash-over-6-last-90-minutes-trading
“We saw some unknown institutions’ heavy selling around 2 p.m.,” said William Wong, Hong Kong-based head of sales trading at Shenwan Hongyuan Securities Ltd. “It is very likely that some overseas investors want to move money out” after the new rules.
zerohedge.com/news/2016-10-17/shanghai-b-shares-unexpectedly-crash-over-6-last-90-minutes-trading
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