[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
The author argues that in the new economy, it's people, not skills or majors, that have lost value.
Colleagues of detained Al Jazeera journalists press demands for their release, 100 days after their arrest in Egypt.
Mehdi Hasan discusses online freedoms and the potential of the web with Wikipedia founder Jimmy Wales.
A tight race seems likely as 814 million voters elect leaders in world's largest democracy next week.
Featured
Since independence, Zimbabwe has faced food shortages, hyperinflation - and several political crises.
After a sit-in protest at Poland's parliament, lawmakers are set to raise government aid to carers of disabled youth.
A vocal minority in Ukraine's east wants to join Russia, and Kiev has so far been unable to put down the separatists.
Iran's government has shifted its take on 'brain drain' but is the change enough to reverse the flow?
Deadly attacks on anti-mining activists in the Philippines part of a global trend, according to new report.
join our mailing list