Barely a week after word came out that Mainland China's private investors were going to be allowed to invest in the Hong Kong Stock Exchange, the government in Beijing has evidently had second thoughts.

Forbes and other sources are reporting that the plan to allow Chinese citizens from the Mainland to invest in the HKEX has apparently been put on hold. Evidently Beijing had second thoughts about the idea that largest amounts of money could move out of China through investment in foreign firms listed in Hong Kong without much government control over the flow of the funds.




During the last week the HKEX has reached new record highs in anticipation of the influx of Mainland money. The Hang Seng dropped over 200 points on Wednesday as Beijing's reluctance to go through with the plan began to come out. It will probably be a few more days at least before we find out for sure what the government in Beijing intends to do on the issue. I'll keep you posted...