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HSB launches "A Share Investment Services"
Updated: 2004-07-14 10:44

The Hang Seng Bank announced in Hong Kong Monday that it will launch its "A Share Investment Services" Tuesday, allowing customers to trade A Share and Convertible bonds listed on the Shenzhen Stock Exchange and Shanghai Stock Exchange.

It makes the bank to become the first bank in Hong Kong to offer retail investors the opportunity to invest directly in A Share and related investments in Chinese mainland, after the bank attained its Qualified Foreign Institutional Investor (QFII) status.

The bank also offers two Hang Seng 100 percent Capital Guaranteed China A-Share Funds, giving investors an opportunity to enjoy potential return at maturity through participation in the potential growth of the FTSE/Xinhua China A 50 Index during the investment period of 4.75 years. One of the new funds provides eight guaranteed cash dividends of 12 percent in total.

K.M. Cheung, assistant general manager and head of Investment Services of Hang Seng Bank, said, "The rapidly expanding securities market in the Chinese mainland has been drawing the attention of investors. Before the introduction of the QFII, foreign investors were unable to access the A Share market, which has over 1,300 listed companies and is more actively traded and offers a wider choice of industries."

"The Hang Seng 'A Share Investment Services' provide investors with another opportunity to capitalize on the long-term growth of the mainland market through the QFII status of the Bank," he said.

"To cater for the different investment needs of customers, the A Share related investment funds offer another choice for investing in the A Share market," he said.

Customers can place orders to trade A Shares and convertible bonds listed on the mainland stock markets through a designated manned hotline, according to the bank.

The bank was approved by the China State Administration of Foreign Exchange (SAFE) for an investment quota of 50 million US dollars in June after it was granted the QFII securities investment business permit by the China Securities Regulatory Commission (CSRC) in May.

Founded in 1933, the Hang Seng Bank is a principal member of the Hongkong and Shanghai Banking Corporation (HSBC) Group and the second largest listed bank in Hong Kong in terms of market capitalization.

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