Hong Kong and Asia Securities Industry Financial Markets Association

Asia Securities Industry Financial Markets Association: Most long-term asset managers arent going to buy mainland shares through the program in the near term, because investors and regulators arent comfortable with their ability to enforce ownership of the equities, Mark Austen, chief executive officer of the Asia Securities Industry Financial Markets Association, said today in Hong Kong. Requirements to deliver shares to a broker before selling them are also sapping interest, he said, according to Bloomberg. There is no stated mechanism in the stock connect, existing Chinese law or Shanghai Stock Exchange rules for confirming the identity of beneficial owners of the A-shares, Asifma said in a report issued today with Thomson Reuters . There remains uncertainty as to how owners of the A-shares assert or pursue their claims as shareholders in China and Institutional investors are shying away from the Shanghai- Hong Kong stock link due to uncertainty about ownership rights and complicated trading procedures, according to an industry body. While investors maxed out the 13 billion yuan $2.1 billion daily quota for Shanghai shares on Nov. 17, buying through the link has fallen short of the limit each day since then. Foreigners briefly turned net sellers of so-called A-shares yesterday for the first time. About 95 percent of large funds arent ready to invest because of operational and compliance reasons, Andy Maynard, the Hong Kong-based global head of trading and execution at Ltd., said last week. (news.financializer.com). As reported in the news.