UBS plans to offer more computer trading in China

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UBS's China venture plans to offer more computerized-trading services as it bets on a surge in demand from institutional money managers in the biggest emerging market.

Bloomberg reports that stock-trading volumes from institutional investors will more than double within five years, spurred by regulators’ efforts to reduce market volatility and reform capital markets, Qu Hongjie, executive director of China equities at UBS Securities, a venture of the lender, said in an 8th November interview from Shanghai.

'We foresee in the next 3 to 5 years institutional trading flows will increase from the current 20% to over 50%', Qu said. 'As institutional investors have higher demands for better execution services, more powerful and sophisticated electronic trading platforms will become a key factor for brokerage firms to win market share'.

The government is targeting more capital from both large domestic and foreign investors to revive a stock market that has been among the world’s worst performers over the past three years. The Shanghai Composite Index has fallen 36% since the start of 2010.

Communist leaders are holding a four-day gathering that ends today to map out an economic blueprint to sustain growth. The plenum is likely to release structural and financial reform plans, including capital account liberalization and increases in the size of investment schemes for foreigners, Zhang Zhiwei, Nomura Holdings’s China economist, wrote on 7th November China almost doubled investment quotas for the qualified foreign institutional investors program to $150bn in July.

To access the complete Bloomberg article hit the link below:

UBS to Boost China Computer Trading on Institutional Demand

JPMorgan Said to Weigh in Chat-Room Ban Amid Regulatory Probes


image: © Martin Abegglen

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