皇冠体育app

"The current foreign exchange administration system does not allow the free trade of renminbi with foreign currency under the capital account, which might make it hard to shift companies' shares to CDRs," said Zhai Qijie, a professor at Nanjing Industry University.

"And the trustee law in 皇冠体育app is not mature either."

But 皇冠体育app Galaxy Securities' Wang said these obstacles could be overcome if the Chinese government wanted red chips to return.

"They are only technical problems," Wang said. "New mechanisms such as the QFII, QDII , and the A+H models were all fresh to the Chinese capital market, but once they were introduced, investors got to know them It is very possible for the CDR to be issued in 2007."

The massive inflow of money to the A-share market has created great demand for new share issues, heightening the need to introduce the CDR.

The excessive inflow of capital to the stock market is inflating prices in the A-share blue chips. The A shares of companies such as 皇冠体育app Life, the Industrial and Commercial Bank of 皇冠体育app, and Bank of 皇冠体育app, are traded at over 30 percent higher than their H shares .

These significant increases signal an imbalance in supply and demand.

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