Stock Connect tipped to squeeze prime brokers
As China opens its capital account, the country's foreign investor quota system is being seen as declining in importance. In a two-part series, AsianInvestor examines how prime brokers are responding.
Prime brokers offering hedge fund clients A-share execution via qualified foreign institutional investor (QFII) quota are bracing for lower commissions once the Shanghai-Hong Kong Stock Connect launches, as is expected in October.
The prospect of declining business has prompted some prime brokers to re-evaluate how they use their QFII quota.
Investment banks have earned lucrative commissions by offering clients access to China’s A-share market using their quota. But that revenue…
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