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Citizens have already been allowed to invest $67 billion in foreign equities, 2.5 times more than foreigners can buy in China.
"Investors hold a puzzling small share of their portfolios in foreign equities.
Also, Harvard had about 22percentt of its endowment in foreign equities where Yale has about 15percentt.
"Microsoft is the dominant player, and there is the fear other companies cannot break through because its programs" are too ubiquitous, said Keichi Nakamura, who helps manage about $1 billion in foreign equities, including Microsoft, at Dai-Ichi Mutual Life Insurance in Tokyo.
Mainland listings and relaxed rules on the amount Chinese regulators allow approved investors to place in foreign equities have been big contributors to a profit surge for the company: first-half profit more than doubled to 2.3 billion Hong Kong dollars ($291 million), compared with the period a year ago.
(That's 30% of the 50% in equity, so 15% of the total portfolio will be in foreign equities).
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Indian IT firms are allowed to raise up to $100m in foreign equity to buy foreign companies.
Masanori Tsuno, of Frank Russell, a pension consultancy, says that his company's clients, which include six of the ten biggest pension funds, now have between 10% and 20% of their investments in foreign equity.
The only answer to that question, in theory, is China, but its carriers are generally profitable and show little interest in foreign equity.India's carriers raised their domestic fares by around a third last year, as Kingfisher's slow demise cut competition.
Finally, we find that the increase in foreign equity investment derives primarily from the U.S., whereas the increase in foreign debt investment derives from the U.S. and other non-adopting countries.
We find that the increase in foreign equity investment around IFRS adoption is limited to countries that had higher governance quality, economic development, and creditor rights prior to adoption.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com