Home / Business / News Tools: Save | Print | E-mail | Most Read | Comment
1st JV investment bank obtains QDII quota of US$5b
Adjust font size:

China International Capital Corp. (CICC), the country's first joint-venture investment bank, acquired a qualified domestic institutional investor (QDII) investment quota of 5 billion U.S. dollars, a senior foreign exchange management official said over the weekend.

 

CICC's shareholders include Morgan Stanley International.

 

Sun Lujun, deputy head of the capital project department under the State Administration of Foreign Exchange, said that by early December, the forex market regulator had verified a total of 23 billion U.S. dollars as QDII quotas for China Southern Fund, Huaxia Fund, Harvest Fund and China International Fund.

 

Sun said that through the end of October, 16 QDIIs had put on the market 154 QDII products. Sun added that 28.6 billion U.S. dollars was actually remitted abroad for QDII operation by the end of the month. The total indicates that capital flows accelerated sharply over the past few months as from April 2006 to March 2007, funds remitted abroad were only 4 billion U.S. dollars or so.

 

Shanghai Securities News said last Friday that Chinese banks' QDIIs would likely be allowed to invest in U.S. and European stock markets. The move is expected to be one of several steps by the Chinese government to expand investment channels and disperse excess liquidity, which has driven up domestic stock markets.

 

In May, bank QDIIs got regulatory approval to invest in Hong Kong stocks. It was the first time they were allowed to invest in overseas stocks instead of being restricted to fixed-income products.

 

Bank QDIIs are restricted to investment in securities markets whose regulators have signed memoranda of understanding with China.

 

(Xinhua News Agency December 17, 2007)

Tools: Save | Print | E-mail | Most Read
Comment
Pet Name
Anonymous
China Archives
Related >>
- CICC Approved for Overseas Securities Trade
Most Viewed >>

Nov. 1-2 Tianjin World Shipping (China) Summit
Nov. 7-9 Guangzhou Recycling Metals International Forum
Nov. 27-28 Beijing China-EU Summit
Dec. 12-13 Beijing China-US Strategic Economic Dialogue

- Output of Major Industrial Products
- Investment by Various Sectors
- Foreign Direct Investment by Country or Region
- National Price Index
- Value of Major Commodity Import
- Money Supply
- Exchange Rate and Foreign Exchange Reserve
- What does the China-Pakistan Free Trade Agreement cover?
- How to Set up a Foreign Capital Enterprise in China?
- How Does the VAT Works in China?
- How Much RMB or Foreign Currency Can Be Physically Carried Out of or Into China?
- What Is the Electrical Fitting in China?