Hong Kong ETFs open the ‘door’ to Chinese RMB holders, issuers say
Martin Young2 hours agoHong Kong ETFs open the ‘door’ to Chinese RMB holders, issuers sayFund issuers and industry experts hope Hong Kong’s new crypto ETFs will open the door for mainland Chinese investment in the future.1679 Total views3 Total sharesListen to article 0:00NewsOwn this piece of crypto historyCollect this article as NFTJoin us on social networksSpot crypto exchange-traded funds (ETFs) launched in the Hong Kong stock market have cracked the door open for a future wave of Chinese investors, according to industry experts.
Speaking to Bloomberg TV, China Asset Management’s CEO, Yimei Li, said that the launch of the spot Bitcoin (BTC) and Ether (ETH) ETFs on Tuesday “opens the door for a lot of RMB [Chinese yuan] holders” seeking alternative investments.
China Asset Management is one of three ETF issuers, including Harvest Global Investments and Bosera Asset Management, that launched its crypto product on the Hong Kong Stock Exchange on April 30.
Li hoped there could be a “new opportunity” for mainland Chinese investors to “participate in this process” in the future, she told Bloomberg TV.“As the opening up progresses, we definitely hope that multi-assets will be available for domestic investors.”
Crypto trading remains banned in mainland China, and the new ETFs are only available to Hong Kong residents at the moment.
Harvest Global CEO Han Tongli said that regulators will be closely monitoring how Hong Kong’s new ETFs develop, adding: “They want to contain the risk. As long as they’re comfortable with the risks, I think the market will open gradually.”
Jan3 CEO and Bitcoin pioneer Samson Mow said that ETFs in Hong Kong “are going to be big,” adding that the “long-term implications are massive,” in a post on X on April 30.“There is really nothing else for Chinese investors to put their money into at this time.”
The comments come in response to a post by Bitcoin environmentalist Daniel Batten, who observed that all three Chinese stock exchanges dropped in 2023 and the real estate market is still in turmoil.
All major Chinese real estate data indicators came in weak or worse in the first quarter, reported Barron’s last week.Source: Daniel Batten
Most Chinese ultra-high-net-worth individuals can invest in Hong Kong’s crypto ETFs, he added.
Related:Hong Kong ETFs begin trading, issuers unfazed if US declares ETH a security
In a press conference on April 29, China Asset Management’s Zhu Haokang confirmed that mainland Chinese investors were currently not allowed to invest in Hong Kong’s new ETFs.
“Hong Kong’s qualified investors, institutional investors, retail investors, and international investors who meet the regulations can all invest in cryptocurrency spot ETFs,” he added.
The hope among fund issuers and investors is that this could be the genesis of a new wave of capital inflows from the mainland at some stage in the future.
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