BIZCHINA / Top Biz News

China grants US$250m quotas
Updated: 2006-06-18 10:56

China's foreign exchange authority has awarded additional investment quotas totaling 250 million U.S.dollars to two qualified foreign institutional investors (QFII).

The two QFIIs are the Bank of Nova Scotia in Canada and the KBC Financial Products UK Limited, which received investment quotas of 150 million dollars and 100 million dollars respectively from the State Administration of Foreign Exchange (SAFE).

The Bank of Nova Scotia, established in 1832, is one of the major financial institutions in North America with total asset exceeding 260 billion U.S. dollars. It has offices in Beijing and Shanghai, subsidiary banks in Guangzhou and Chongqing, and holds 4 percent shares of Xi'an City Commercial Bank.

The KBC Financial Products UK Limited is an investment company affiliated to the renowned KBC Bank of Belgium.

The Chinese government launched the QFII pilot program in 2003, allowing foreign institutional investors such as the UBS, Deutsche Bank, and Citigroup Global Markets Limited to engage in the securities business on the Chinese mainland.

Since then, the regulator has been making efforts to improve rules and regulations in a bid to open the stock market wider to foreign investment.

To date, 40 foreign investment institutions have been approved as QFIIs. Up to now, the SAFE has awarded investment quotas totaling 7.145 billion U.S. dollars to QFIIs.

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