Investing
China Investors Evade Capital Controls to Buy Hong Kong IPOs
- Mainland money has fueled Hong Kong’s share-sale boom
- China’s financial regulators have so far looked the other way
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It’s not hard to find reasons why cash is pouring into Hong Kong initial public offerings at a record pace: rock-bottom interest rates, frothy markets, pandemic boredom.
But one of the biggest factors behind the frenzy often goes overlooked: the growing willingness of Chinese investors to evade capital controls as regulators turn a blind eye.