New account opening rules buoy Chinese markets
Major Chinese indices opened up about 2%, buoyed by liberalization of personal account rules. ChinaClear canceled the limit on the number of personal securities accounts that individuals may open. Chinese citizens now can open up to 20 brokerage accounts. Hong Kong’s Hang Seng China Enterprise Index was up 1.62% in the first fifteen minutes of trading.
Asia Unhedged continues to believe that Hong Kong H-shares remain a value rather than a speculative proposition, with a forward P/E around half that of the S&P 500 and a free cash flow yield of around 20%.