Qatar Holding wins QFII status to invest in China

REUTERS

SHANGHAI CHINA’s securities regulator granted investment licences Qatar Holding to and six other overseas institutional investors in September, allowing them to buy Chinese stocks and bonds.

The China Securities Regulatory Commission (CSRC) said on Tuesday it gave the Qualified Foreign Institutional Investor (QFII) licences to investors including the Duke University, Macquarie Bank, Qatar Holding and KDG Capital Management.

Qatar Holding is a global investment house established by the Qatar Investment Authority (QIA) in 2006 to achieve steady long term returns on assets to benefit Qatar and to diversify its economy. It invests in strategic private and public equity in international and local markets. It also makes other direct investments.

Earlier this year, China raised the total maximum QFII quota to $80 billion from a previous ceiling of $30 billion, a target that was exceeded last month.

China has recently stepped up efforts to woo foreign QFII investors, amid signs that overseas interest in the country’s capital markets has waned due to economic uncertainty.

In an unusual campaign sponsored by the government, officials from CSRC, Shanghai and Shenzhen stock exchanges, as well as Chinese fund houses and custodian banks last month embarked on global tour aimed at attracting foreign institutional investors.

China’s financial markets are largely shut off to investors from abroad and the country’s currency is not fully convertible. Under the QFII scheme, which was launched in 2003, an overseas institution is granted a licence and an investment quota under which it can buy mainland stocks and bonds.

China has granted QFII licences to 188 foreign investors, 157 of whom have obtained combined quotas of $30.82 billion.

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