China's foreign exchange authority has awarded investment quotas
totaling US$6.57 billion to 34 qualified foreign institutional
investors (QFII) by the end of April.
According to figures released by the State Administration of
Foreign Exchange (SAFE), a total of 40 foreign institutional
investors have been allowed to enter the Chinese capital market as
QFII.
Investors from overseas in China are allowed to hold tradable
shares only through QFIIs.
China began to grant overseas institutional investors the status
of QFIIs in May 2003, and the Chinese government promised to
increase the total investment quota to US$10 billion.
SAFE approved US$2.22 billion in investment quotas for QFIIs
last year.
The China Securities Regulatory Commission granted QFII status
to three foreign investment institutions in a period of one week
last month in a bid to increase capital inflow into the country's
stock market.
The latest QFIIs granted investment quotas or additional quotas
include P Morgan Chase Bank, The DBS Bank Ltd, and JF Asset
Management Limited.
SAFE announced in April that it had given an additional quota of
100 million dollars to JP Morgan Chase Bank, raising its total to
150 million dollars.
The DBS Bank Ltd, Singapore's largest bank and a subsidiary of
investment firm Temasek Holdings, was awarded a quota of 100
million dollars.
JF Asset Management Limited was given a quota of 150 million
dollars, with at least 100 million dollars to be used as a JF stock
fund.
A SAFE statement said QFIIs had helped the reform and innovation
of China's capital markets since the scheme was piloted in December
2002.
(China Daily May 5, 2006)