DOCSLIB.ORG

War Rooms Within War Zones

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
War Rooms Within War Zones WA R WITHINWA R ROOMS ZONES Iraq attempts to create a stock exchange in the midst of violent chaos By Claudia La Rocco Many of the larger companies in Mogadishu, including the bottling plant, have issued shares, although there is of course no stock exchange or financial authority of any sort in the city. Everything is based on trust, and so far it has worked, owing to Somalia’s tightly woven clan net- works: everyone knows everyone else, so it’s less likely that an unknown con man will pull off a scam. In view of Somalia’s history, S I this ad hoc stock market is not as B R O C implausible as it may sound. Until a / a t i h century ago, when Italy and Britain s a m divided what is present-day Somalia a Y . S into colonial fiefdoms, Somalis got l e a h c along quite well without a state, rely- i M ing on systems that still exist: infor- Trading on the Baghdad Stock Exchange, 1999. mal codes of honor and a means of resolving disputes, even violent ones, after nearly a decade of civil war in Kuwait in August of 1990, the through mediation by clan elders. Lebanon. It reopened in 1995. Kuwait Stock Exchange in Kuwait –Peter Maass1 During World War I, the London City was forced to close. The eight- Stock Exchange shut its doors from story building escaped major damage Cutthroat deals, take no prisoners; July of 1914 until the following year. during seven months of occupation, war rooms; the language of combat Of the 1,600 men who volunteered though Iraqi troops did make off is often used to describe the world of for the Stock Exchange Battalion of with a $5 million Unisys computer. business. But throughout history, the Royal Fusiliers, 400 did not return. But systematic looting only got as far clichéd comparison has been no mere World War II caused shorter disrup- as handwritten notes placed on metaphor for many stock exchanges. tions. In 1939, the bourse closed for everything from furniture to paint- The crippling or disruption of just six days, reopening on Septem- ings. exchanges by wars is nothing new, ber 7. It wasn’t until 1945 that the “Thank God there is no stock from the New York Stock & exchange closed again, this time market in Baghdad. That would have Exchange Board suspending trading when a V2 rocket damaged the decided who got all this,” the in seceding states in 1861, to the building. Investors solved this prob- exchange’s deputy director general, arduous history of the Belgrade lem by relocating to the basement Abdullah Al-Sederawy, told USA Stock Exchange, to the 1983 suspen- the next day. Today reporter James Cox, explain- sion of the Beirut Stock Exchange When Saddam Hussein invaded ing that the contents of the building Financial History ~ Winter 200620 www.financialhistory.org were not transported to the Iraqi since World War I. No one knew deterioration caused by a succession capital because Kuwait was liberated what to expect when the markets of wars; a decade of international before two feuding Iraqi ministries reopened; some feared stocks would sanctions; and the looting and sabo- could decide who would get what.2 tumble, while others predicted a tage that followed the 2003 war, the Still, other companies did suffer patriotic response. US government set its sights high heavy losses. The bourse did not Neither the NYSE nor the elec- after toppling Saddam Hussein; to reopen until the fall of 1992, and tronically-based Nasdaq were physi- create a liberal, market-based Iraqi then it did so as a shadow of its for- cally damaged, but a telephone economy, a key piece of its broader mer self, as the country’s economy switching operation was destroyed, goal to bring democracy to Iraq. sorted through the wreckage left by cutting off some communications —Bathsheba Crocker3 Saddam’s army. systems needed for trading. The Still, however daunting, the task American Stock Exchange, just a of rebuilding was a discreet one; the half-block from the World Trade It will be to their fortune if they do Iraqi army was vanquished, the Center site, did not escape (invest). Iraq is one of the richest threat repelled. Kuwait’s financial unscathed. It resumed stock trading countries in the world. Give me secu- institutions could proceed, relatively on the NYSE, and options trading on rity and a little time, and you will see. secure in their belief of a peaceful the Philadelphia Stock Exchange, —Talib Tabatabai, Chairman of the future. Increasingly, this is not the while construction crews worked to Iraq Stock Exchange4 case. clear the building of debris and Markets rarely thrive in uncertain worked on safety and access issues. When something blows up or conditions. As both actual wars and This resumption, on Monday crashes in Iraq, there isn’t much sus- business have become more global morning, was both somber and defi- pense over whether it’s an accident or affairs in recent history, and terror- ant. A heavy police presence, includ- a deliberate act of destruction. In the ism continues to erase the line ing bomb-sniffing dogs, reinforced midst of so much violence, it would between battlefield and civilian activ- the feeling of a city under siege. Bags seem impossible to create the condi- ity, economies have had to adjust to were checked and those entering the tions necessary for a viable stock ever-higher levels of uncertainty. building had to pass through metal exchange to exist. But, as Peter Maass’ Exchanges cannot simply close their detectors. The stars and stripes were reporting on the incredible situation in doors and wait for the violence to draped across the white columns. Mogadishu demonstrates, what seems end. Instead, both psychologically Four years later, New Yorkers like insurmountable chaos can pro- and through tangible security mea- have grown used to bomb scares, vide enterprising businessmen with sures, they must adjust to a world in building evacuations and random surprising opportunities. which the ever-present threat of searches. For many, despite occa- Now, the world watches as the attack is commonplace. sional jitters during the morning sub- fledgling Iraqi economy seeks to find In September 2000, 15 people way commute, a new sort of fatalistic its footing and the fledgling nation were killed when a bomb exploded in complacency has set in. For months seeks to find its way out of a war the underground parking lot of after the attacks, though, the city, zone. For many, such as Iraqi Indus- Jakarta’s struggling exchange. The especially its financial heart, try Minister Hajim al Hussani, the week-long closure of the bourse gar- remained raw. On November 12, two are inextricably linked: “The nered very little attention from the when American Airlines Flight 587 way to eliminate [the insurgency] outside world, which likely dismissed crashed into a city neighborhood will only be by creating job opportu- it as just the latest political violence shortly after take off, killing 265 peo- nities in the private sector. And the in Indonesia’s troubled history. ple, everyone assumed it was another development of the private sector The response was far different a strike on New York. The Dow depends on the improvement of the year later, on September 11, when plunged as much as 198 points in security situation.”5 two hijacked planes brought Amer- early trading before investors learned The old Baghdad Stock Exchange ica’s financial center to its knees. The terrorism likely wasn’t the cause. (BSE) existed for about 11 years New York Stock Exchange, Nasdaq under Saddam Hussein, who created Stock Market and American Stock To establish even a marginally func- it in 1992. Initially consisting of 64 Exchange shut down that Tuesday tioning economy out of the wreckage companies, the exchange grew to morning, and remained closed for of Iraq would have been a daunting include at least 114 companies, as the rest of the week. It was, as widely task. Despite decades of a heavily reported by Maher Chmaytelli of reported, the longest halt in trading controlled, state-run economy; the Agence France Presse, in an article www.financialhistory.org21 Financial History ~ Winter 2006 S I B R O C / s r e t u e R / l o o P / n a h K d e e a S Iraqi stock brokers walk past a bell presented by the Philadelphia Stock Exchange in commemoration of the opening of the Iraq Stock Exchange, July 18, 2004. from November 3, 2002. At that Jamil Qays were optimistic: “It will month.)6 Not surprisingly, certain time, the BSE’s capitalization had end at some point, demand will people’s portfolios were more suc- grown to 274 billion dinars ($137 resume, along with production and cessful under this system than others. million), up from one billion dinars profit. Think long term.” Still, trading continued until just in 1992 (about $20 million). Mark- Three years later, many Iraqi before the US-led invasion of Iraq: ers and white boards were used to investors and foreign observers are “‘The brokers were all waiting for mark transactions, “with traders saying the same thing. Under the old the bombs to start dropping,’ said watching through opera glasses.” regime, the Baghdad Stock Exchange Siro Pedros, 50, of the Nineveh Bro- Leading up to the 1990s, Iraq’s was a haven for cronyism, manipu- kerage Co., who has been a stock- economy was one of the strongest in lated by officials who used it for broker in Baghdad since 1997.
Load more

Recommended publications
  • The Role of MENA Stock Exchanges in Corporate Governance the Role of MENA Contents Stock Exchanges Executive Summary Introduction in Corporate Governance Part I
    The Role of MENA Stock Exchanges in Corporate Governance The Role of MENA Contents Stock Exchanges Executive Summary Introduction in Corporate Governance Part I. Key Features of MENA Markets Dominant state ownership Low regional and international integration Moderate competition for listings Young markets, dominated by a few sectors High levels of retail investment Diversifi cation of fi nancial products Part II. The Role of Exchanges in Corporate Governance The regulatory role The listing authority Corporate governance codes Disclosure and transparency The enforcement powers Concluding Remarks Annex I. About The Taskforce Annex II. Consolidated Responses to the OECD Questionnaire Annex III. Largest Listed Companies in the MENA region www.oecd.org/daf/corporateaffairs/mena Photos on front cover : © Media Center/Saudi Stock Exchange (Tadawul) and © Argus/Shutterstock.com 002012151cov.indd 1 12/06/2012 12:48:57 The Role of MENA Stock Exchanges in Corporate Governance This work is published on the responsibility of the Secretary-General of the OECD. The opinions expressed and arguments employed herein do not necessarily reflect the official views of the Organisation or of the governments of its member countries. This document and any map included herein are without prejudice to the status of or sovereignty over any territory, to the delimitation of international frontiers and boundaries and to the name of any territory, city or area. © OECD 2012 You can copy, download or print OECD content for your own use, and you can include excerpts from OECD publications, databases and multimedia products in your own documents, presentations, blogs, websites and teaching materials, provided that suitable acknowledgement of OECD as source and copyright owner is given.
    [Show full text]
  • Membership Application for New York Stock Exchange LLC and NYSE
    Membership Application for New York Stock Exchange LLC1 and NYSE American LLC 1 NYSE membership permits the Applicant Firm, upon approval of membership, to participate in the NYSE Bonds platform. TABLE OF CONTENTS Page Application Process and Fees 2-3 Information and Resources 3 Explanation of Terms 4-5 Section 1 – Organizational Profile 6 Section 2 – Applicant Firm Acknowledgement 7 Section 3 – Application Questions 8-9 Section 4 – Floor Based Business 10 Section 5 – Key Personnel 11 Section 6 – Additional Required Documentation and Information 12-14 Section 7 – Designation of Accountant 15 Section 8 – Required Organizational Documents and Language Samples / References 16 NYSE and NYSE American Equities Membership Application - October 2019 1 APPLICATION PROCESS Filing Requirements Prior to submitting the Application for New York Stock Exchange LLC (“NYSE”) and/or NYSE American LLC (“NYSE American”) membership, an Applicant Firm must file a Uniform Application for Broker-Dealer Registration (Form BD) with the Securities and Exchange Commission and register with the FINRA Central Registration Depository (“Web CRD®”). Application Submission Applicant Firm must complete and submit all applicable materials addressed within the application as well as the additional required documentation noted in Section 6 of the application. Application and supplemental materials should be sent electronically to [email protected]. Please ensure all attachments are clearly labeled. NYSE Applicant Firm pays one of the below application fees (one-time fee and non-refundable): Clearing Firm $20,000 (Self-Clearing firm or Clears for other firms) Introducing Firm $ 7,500 (All other firms fall within this category) Non-Public Firm $ 2,500 (On-Floor firms and Proprietary firms) Kindly make check payable to “NYSE Market (DE), Inc.” and submit the check with your initial application.
    [Show full text]
  • Investor Guide of Baghdad (English)
    THE USAID-TIJARA PROVINCIAL ECONOMIC GROWTH PROGRAM INVESTOR GUIDE OF BAGHDAD NOVEMBER 2011 This report was produced for review by the U.S. Agency for International Development (USAID). It was prepared by The Louis Berger Group, Inc. Contract No. 267-C-00-08-00500-00 The USAID-TIJARA PROVINCIAL ECONOMIC GROWTH PROGRAM INVESTOR GUIDE OF BAGHDAD This guide provides information of the procedures required on how to establish a project or any other investment project in Baghdad province. It includes guidance on obtaining licenses and permits as well as other information useful to investors, . DISCLAIMER The author’s views expressed in this publication do not necessarily reflect the views of the U.S. Agency for International Development (USAID) or the United States Government. CONTENTS ACRONYMS ............................................................... ii 1. INTRODUCTION......................................................... 1 Background of Baghdad Investment Commission ............................. 1 Geography ........................................................................................ 1 People ............................................... Error! Bookmark not defined. Economy ........................................................................................... 5 Transport and Communications ........................................................ 6 2. THE INVESTMENT ENVIRONMENT .......................... 7 Introduction ....................................................................................... 7 Openness
    [Show full text]
  • Ladies of the Ticker
    By George Robb During the late 19th century, a growing number of women were finding employ- ment in banking and insurance, but not on Wall Street. Probably no area of Amer- ican finance offered fewer job opportuni- ties to women than stock broking. In her 1863 survey, The Employments of Women, Virginia Penny, who was usually eager to promote new fields of employment for women, noted with approval that there were no women stockbrokers in the United States. Penny argued that “women could not very well conduct the busi- ness without having to mix promiscuously with men on the street, and stop and talk to them in the most public places; and the delicacy of woman would forbid that.” The radical feminist Victoria Woodhull did not let delicacy stand in her way when she and her sister opened a brokerage house near Wall Street in 1870, but she paid a heavy price for her audacity. The scandals which eventually drove Wood- hull out of business and out of the country cast a long shadow over other women’s careers as brokers. Histories of Wall Street rarely mention women brokers at all. They might note Victoria Woodhull’s distinction as the nation’s first female stockbroker, but they don’t discuss the subject again until they reach the 1960s. This neglect is unfortu- nate, as it has left generations of pioneering Wall Street women hidden from history. These extraordinary women struggled to establish themselves professionally and to overcome chauvinistic prejudice that a career in finance was unfeminine. Ladies When Mrs. M.E.
    [Show full text]
  • In the Matter of New York Stock Exchange LLC, and NYSE Euronext
    UNITED STATES OF AMERICA Before the SECURITIES AND EXCHANGE COMMISSION SECURITIES EXCHANGE ACT OF 1934 Release No. 67857 / September 14, 2012 ADMINISTRATIVE PROCEEDING File No. 3-15023 In the Matter of ORDER INSTITUTING ADMINISTRATIVE AND CEASE-AND-DESIST PROCEEDINGS New York Stock Exchange LLC, and PURSUANT TO SECTIONS 19(h)(1) AND 21C NYSE Euronext, OF THE SECURITIES EXCHANGE ACT OF 1934, MAKING FINDINGS AND IMPOSING Respondents. SANCTIONS AND A CEASE-AND-DESIST ORDER I. The Securities and Exchange Commission (“Commission”) deems it appropriate and in the public interest that public administrative and cease-and-desist proceedings be, and hereby are, instituted pursuant to Sections 19(h)(1) and 21C of the Securities Exchange Act of 1934 (“Exchange Act”) against the New York Stock Exchange LLC (“NYSE”) and NYSE Euronext (collectively, “Respondents”). II. In anticipation of the institution of these proceedings, Respondents have submitted Offers of Settlement (the “Offers”) that the Commission has determined to accept. Solely for the purpose of these proceedings and any other proceedings brought by or on behalf of the Commission, or to which the Commission is a party, and without admitting or denying the findings herein, except as to the Commission’s jurisdiction over them and the subject matter of these proceedings, which are admitted, Respondents consent to the entry of this Order Instituting Administrative and Cease-and-Desist Proceedings Pursuant to Sections 19(h)(1) and 21C of the Securities Exchange Act of 1934, Making Findings and
    [Show full text]
  • Al-Rabee Securities Does They Are Unable to Compete with the Prices of Imported Items
    st Iraq Stock Exchange Weekly News March 1 2008 Weekly Value Traded ID 1,245,570,000 Iraqi Dinar Value 1USD=1220ID Close Wk. % chg YTD % Chg 12-month % Chg 36.100 0.45% 4.37% 37.31% ISX Iraqi Dinar vs. USD Al-Rabee 45 1340 1320 Securities 40 1300 1280 35 1260 Member of the Iraq Stock Exchange 1240 30 1220 1200 25 1180 1160 Jan F Mar-07 Apr-07 May- Jun-0 Ju Aug Sep-07 O Nov-0 D Jan Feb-08 20 eb l-07 ct-07 ec-07 J F M A M J J A S O N D J F -0 -07 0 -0 -08 an eb ar pr ay un ul- ug ep ct ov ec an eb 7 7 7 7 7 For any inquiries, contact: -07 -07 -07 -07 -07 -07 07 -07 -07 -07 -07 -07 -08 -08 The ISX Performance for the year Lana Qashani (Research) Politics: Tel: +964 7701 553 503 [email protected] BEST Price % WORST Price % Chg PERFORMERS (ID) Chg PERFORMERS (ID) • According to a top Pentagon official, the US troop presence in Iraq Dar Essalaam Al-Wiaam Financial will remain bigger than it was before last year's "surge" in forces, Nausheruan Baban (Trading) 6.600 11.9% 1.450 -9.4% Investment Bank Investment even after the pull-out of some 20,000 troops by July. Tel: +964 7901 331 492 National Food Ahliya Insurance 1.000 11.1% 1.050 -8.7% • [email protected] Industries According to a senior Turkish official, Turkey will not set a Al-Therar for National Bank of Iraq 1.350 8.0% 0.550 -8.3% timetable to withdraw troops from northern Iraq until they have Agricultural Prod.
    [Show full text]
  • Stock Exchanges at the Crossroads
    Fordham Law Review Volume 74 Issue 5 Article 2 2006 Stock Exchanges at the Crossroads Andreas M. Fleckner Follow this and additional works at: https://ir.lawnet.fordham.edu/flr Part of the Law Commons Recommended Citation Andreas M. Fleckner, Stock Exchanges at the Crossroads, 74 Fordham L. Rev. 2541 (2006). Available at: https://ir.lawnet.fordham.edu/flr/vol74/iss5/2 This Article is brought to you for free and open access by FLASH: The Fordham Law Archive of Scholarship and History. It has been accepted for inclusion in Fordham Law Review by an authorized editor of FLASH: The Fordham Law Archive of Scholarship and History. For more information, please contact [email protected]. Stock Exchanges at the Crossroads Cover Page Footnote [email protected]. For very helpful discussions, suggestions, and general critique, I am grateful to Howell E. Jackson as well as to Stavros Gkantinis, Apostolos Gkoutzinis, and Noah D. Levin. The normal disclaimers apply. An earlier version of this Article has been a discussion paper of the John M. Olin Center's Program on Corporate Governance, Working Papers, http://www.law.harvard.edu/programs/ olin_center/corporate_governance/papers.htm (last visited Mar. 6, 2005). This article is available in Fordham Law Review: https://ir.lawnet.fordham.edu/flr/vol74/iss5/2 ARTICLES STOCK EXCHANGES AT THE CROSSROADS Andreas M Fleckner* INTRODUCTION Nemo iudex in sua causa-No one shall judge his own cause. Ancient Rome adhered to this principle,' the greatest writers emphasized it, 2 and the Founding Fathers contemplated it in the early days of the republic: "No man is allowed to be a judge in his own cause; because his interest would '3 certainly bias his judgment, and, not improbably, corrupt his integrity.
    [Show full text]
  • What Are Stock Markets?
    LESSON 7 WHAT ARE STOCK MARKETS? LEARNING, EARNING, AND INVESTING FOR A NEW GENERATION © COUNCIL FOR ECONOMIC EDUCATION, NEW YORK, NY 107 LESSON 7 WHAT ARE STOCK MARKETS? LESSON DESCRIPTION Primary market The lesson introduces conditions necessary Secondary market for market economies to operate. Against this background, students learn concepts Stock market and background knowledge—including pri- mary and secondary markets, the role of in- OBJECTIVES vestment banks, and initial public offerings Students will: (IPOs)—needed to understand the stock • Identify conditions needed for a market market. The students also learn about dif- economy to operate. ferent characteristics of major stock mar- kets in the United States and overseas. In • Describe the stock market as a special a closure activity, students match stocks case of markets more generally. with the market in which each is most • Differentiate three major world stock likely to be traded. markets and predict which market might list certain stocks. INTRODUCTION For many people, the word market may CONTENT STANDARDS be closely associated with an image of a Voluntary National Content Standards place—perhaps a local farmer’s market. For in Economics, 2nd Edition economists, however, market need not refer to a physical place. Instead, a market may • Standard 5: Voluntary exchange oc- be any organization that allows buyers and curs only when all participating parties sellers to communicate about and arrange expect to gain. This is true for trade for the exchange of goods, resources, or ser- among individuals or organizations vices. Stock markets provide a mechanism within a nation, and among individuals whereby people who want to own shares of or organizations in different nations.
    [Show full text]
  • The Beirut Stock Exchange: Performance Review for H1 2016 BLOMINVEST BANK
    The Beirut Stock Exchange: Performance Review for H1 2016 BLOMINVEST BANK st July 1 , 2016 Contact Information Research Assistant: Riwa Daou [email protected] Head of Research: Marwan Mikhael [email protected] Research Department Tel: +961 1 991 784 The first months of 2016 were somehow positive for the Lebanese economy. In the budding months of 2016, no major security events were recorded. Moreover, the municipal elections were held and the country was busy with the campaigning of traditional political parties but also by that of a new wave of civilians from various backgrounds and professions, still unacquainted with the political scene, but looking to make a change in their respective regions. On the downside, the political status quo lingered yet again. The presidential seat is still vacant at the time of writing with no indications on a near-term resolution. The new US restrictions on Hezbollah transactions handled by any foreign institution spurred much controversy in the country as well. In terms of security events, Lebanon suffered two hits. BLOM Bank’s headquarters were hit by a bomb that luckily left behind only material damage. Later in June, in the border Chrisitian town of Qaa, eight suicide bombers attacked in a two-wave strike one before dawn and one later at night. Unfortunately, the performance of the stock exchange in the first half of 2016 (H1 2016) indicated that negative investor sentiment prevailed yet again. The BLOM Stock Index (BSI) recorded a 1.69% decline over H1 2016 to 1,149.79 points compared to 1,169.52 points at the end of December 2015.
    [Show full text]
  • Broker-Dealer Registration and FINRA Membership Application
    Broker-Dealer Concepts Broker-Dealer Registration and FINRA Membership Application Published by the Broker-Dealer & Investment Management Regulation Group September 2011 Following is an overview of the federal, state and self-regulatory organization (“SRO”) requirements for registration and qualification as a broker-dealer in the United States. We also discuss certain considerations relevant to the decision to register a broker-dealer with the U.S. Securities and Exchange Commission (“SEC” or the “Commission”), application for membership in the Financial Industry Regulatory Authority (“FINRA”) and other SROs, state registration and related costs. I. Jurisdiction .........................................................................................................................................................2 II. Exclusions from Registration.............................................................................................................................2 III. Broker-Dealer Registration and SRO Membership..........................................................................................2 A. SEC Registration .......................................................................................................................................... 2 B. FINRA and Other SRO Membership ............................................................................................................ 3 C. State Registration ........................................................................................................................................
    [Show full text]
  • Exchange-Traded Funds (Etfs)
    Investor Bulletin: Exchange-Traded Funds (ETFs) The SEC’s Office of Investor Education and Advocacy investments in stocks, bonds, or other assets and, in is issuing this Investor Bulletin to educate investors return, to receive an interest in that investment pool. about exchange-traded funds (“ETFs”). Unlike mutual funds, however, ETF shares are traded on a national stock exchange and at market prices This Investor Bulletin discusses only ETFs that are that may or may not be the same as the net asset value registered as open-end investment companies or unit (“NAV”) of the shares, that is, the value of the ETF’s investment trusts under the Investment Company assets minus its liabilities divided by the number of Act of 1940 (the “1940 Act”). It does not address shares outstanding. other types of exchange-traded products that are not registered under the 1940 Act, such as exchange- Initially, ETFs were all designed to track the traded commodity funds or exchange-traded notes. performance of specific U.S. equity indexes; those types of index-based ETFs continue to be the The following information is general in nature and is predominant type of ETF offered and sold in the not intended to address the specifics of your financial United States. Newer ETFs, however, also seek to situation. When considering an investment, make sure track indexes of fixed-income instruments and foreign you understand the particular investment product fully securities. In addition, newer ETFs include ETFs before making an investment decision. that are actively managed - that is, they do not merely seek to passively track an index; instead, they seek to achieve a specified investment objective using an What is an ETF? active investment strategy.
    [Show full text]
  • Read Fact Sheet
    Shanghai-Hong Kong Stock Connect FACT SHEET What is it? Shanghai-Hong Kong Stock Connect is a program that establishes access between the two markets. It will allow international investors to trade in a number of shares listed in Shanghai without having to apply for individual licenses and quotas, and for domestic Chinese investors to trade in some Hong Kong stocks. Who can trade? Chinese institutions, as well as retail investors with a minimum of RMB 500,000 (US$80,769) in their securities accounts, can buy stocks on the Hong Kong exchange. There are no restrictions on the type of international investor that can access the Shanghai market. Can investors buy all listed securities on Hong Kong and Shanghai exchanges? No. At the program’s launch, it will cover 266 stocks listed in Hong Kong, and 568 listed in Shanghai. How big is the program? At launch, there will be a daily limit of RMB 10.5 billion (US$1.7 billion) for net inflows into Hong Kong, and a daily market quota of RMB 13 billion (US$2.1 billion) for net inflows into China. Why is it significant? International investors have had limited access to China’s domestic stock market using an individual quota system. At the same time, retail investors in China have also not had direct access to stocks listed overseas. Stock Connect will allow more international investors including individuals and hedge funds to trade Shanghai-listed shares directly for the first time, while also allowing retail investors in China to trade Hong Kong-listed stocks directly.
    [Show full text]