[QODLink]
Business
Qatar seeks $5bn investment in China markets
Gulf state applies for licence to invest $5bn in scheme allowing foreign exposure to Chinese stock and bond markets.
Last Modified: 25 Jun 2012 09:25
Qatar's energy and industry minister said the quota is aimed at investing in China's securities market [File Photo: EPA]

Qatar is applying for a licence to invest $5bn in China's Qualified Foreign Institutional Investor (QFII) scheme, the main channel for foreign investment in Chinese stock and bond markets.

Mohammed Bin Saleh al-Sada, Qatar's energy and industry minister, said that the QFII quota will be used to invest income earned from selling liquefied gas to China in the country's securities market as well as initial public offerings.

QFII quotas are currently capped at $1bn per each investor but official media reported last month that Chinese regulators are looking at increasing the cap.

Thirty-seven QFIIs, including Norges Bank and Abu Dhabi Investment Authority, have applied to increase their quotas by a combined $12.54bn, it said.

China has launched a series of initiatives intended to attract more investment in the country's capital markets, including stepping up efforts to expand the QFII programme, which it launched in 2003.

Under the QFII programme, an investor is given a licence and an investment quota by regulators.

Last week, China's securities regulator said it was looking at increasing the cap on the combined stake in a listed company held by QFIIs to 30 per cent from 20 per cent.

Earlier this year, the government raised the total maximum QFII quota by $50bn to $80bn.

As of April 16, China had granted QFII licences to 170 investors, and 129 of them had obtained combined quotas of $25.19bn from the country's foreign exchange regulator.

The State Administration of Foreign Exchange has said it will adopt fast-track procedures and allocate more quotas to foreign investors such as pension funds, government-linked funds and insurers.

256

Source:
Agencies
Topics in this article
People
Country
Organisation
Featured on Al Jazeera
More than one-quarter of Gaza's population has been displaced, causing a humanitarian crisis.
Ministers and MPs caught on camera sleeping through important speeches have sparked criticism that they are not working.
Muslim charities claim discrimination after major UK banks began closing their accounts.
Italy struggles to deal with growing flood of migrants willing to risk their lives to reach the nearest European shores.
Featured
Assam officials upset that WWII-era Stillwell Road won't be used in transnational highway linking four Asian nations.
Informal health centres are treating thousands of Syrian refugees in Turkey, easing the pressure on local hospitals.
Indonesian and Malaysian authorities are keeping a close eye on local supporters of the hard-line Middle East group.
Wastewater ponds dot the landscape in US states that produce gas; environmentalists say they’re a growing threat.
China President Xi Jinping's Mongolia visit brings accords in the areas of culture, energy, mining and infrastructure.
join our mailing list