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September 2004

There are some bright signs for China's A-share markets, but many more grim ones

China's yuan-denominated A-share market has been sliding for months - from January to mid-August, the key index has gone from 490 to 355 - and local securities firms are reporting huge trading losses. Yet foreign institutions are still queuing up to join the QFII scheme, allowing them to buy shares in the same market. What's going on?

For one thing, there is a difference between joining a club and actually using the facilities. Many QFIIs (Qualified Foreign Institutional Investors) ...

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