"Through-train" still possible but timing unclear

People's Bank of China Governor Zhou Xiao-Chuan recently indicated that China would allow individuals to invest overseas in a step by step manner. According to the South China Morning Post, he said: "All the measures that can boost individual overseas investment will be launched at an appropriate time and at an appropriate pace."

In addition, Tianjin mayor, Huang Xing-Guo, said yesterday that Tianjin was still to be the pilot city for launch of the "through-train" program. According to the South China Morning Post, he said: "Allowing individuals to make direct outbound securities investments is an important content of China's efforts to gradually make capital accounts convertible."

These comments seem to indicate that at some point the "through-train" program to allow individual investors to directly invest in Hong Kong-listed stocks will be approved. However, the timing is unclear.