Home About Kuna Advertise Contact Us Kuna's Bureaus Services Term Of Use
Register Login
facebook Twitter Youtube rss
EU imposes new sanctions on Crimea, Sevastopol      IEA urges US to improve energy-electricity strategy      Int'l press body condemns deaths of five Syrian journalists      UN Chief condemns Yemen attacks      12 mths deadline to end Israeli occupation
  Economics
Kuwait granted highest investment quota in China stock market
20/01/2013   |   02:10 PM | Kuwait News
تصغير الخطالشكل الأساسيتكبير الخط
Kuwait Investment Authority (KIA)
Kuwait Investment Authority (KIA)

By Miyoko Ishigami (with photos)

BEIJING, Jan 20 (KUNA) -- China's foreign exchange regulator awarded Kuwait Investment Authority (KIA) fresh quota of USD 700 million this week for direct investment in the Chinese securities market, on top of the USD 300 million already granted last year, it was announced Sunday.
With the additional quota awarded by the State Administration of Foreign Exchange (SAFE), KIA's investment quota has reached USD one billion cap that a qualified foreign institutional investor (QFII) can obtain in China.
Kuwait's sovereign wealth fund is one of only six QFIIs that have been granted the highest USD one billion quota. Other five institutions are Qatar Holding, Hong Kong Monetary Authority, Norway's Norges Bank, Government of Singapore Investment Corp. and the Singapore-based Temasek Fullerton, according to the SAFE. Under the new regulation issued by China's securities regulator late December, only sovereign wealth funds are entitled to receive a quota above USD one billion.
KIA has earlier told Kuwait News Agency (KUNA) that it received the initial investment quota of USD 300 million last March after winning a QFII license in December 2011, following the inauguration of its Beijing Representative Office in October in that year. China launched the QFII program in 2002 to allow qualified overseas funds to buy and sell yuan-denominated A-graded shares within the SAFE-set quota. As of December 31, the authorities had granted QFII status to 207 foreign institutions, with 169 QFII license holders given a combined investment quota of USD 37.44 billion.
Speaking at the Asia Financial Forum in Hong Kong on January 14, China Securities Regulatory Commission Chairman Guo Shuqing said China can increase 10 times the current level of foreign investment that now only accounts for about 1.5 percent of the country's A-share market. Guo also said China will further increase the total quota for QFII investors, which at present stands at USD 80 billion.
KIA, which manages Kuwait's oil generated-assets, said in October that the fund's investment in Greater China including Hong Kong has grown nearly eight times to USD 15 billion since its entry into the Hong Kong market in 2000, with setting its sights on hitting USD 20 billion this year. For mainland China alone, the figure has jumped to USD eight billion from zero in the past six years.
In another development, KIA Managing Director Bader Al-Saad told KUNA in October that the fund was also granted a CNY 6.5 billion (USD 1 billion) license by China's central bank last year to invest in the domestic interbank bond market. The People's Bank of China launched a program in August 2010 to allow selected foreign financial institutions and central banks to buy bonds on China's interbank market under a preset quota, in a move aimed at promoting the internationalization of Chinese currency.
Across Asia, KIA has so far participated as a cornerstone investor in Industrial and Commercial Bank of China, Agricultural Bank of China, AIA, CITIC Securities and the region's biggest hospital operator IHH Healthcare of Malaysia. Cornerstone investors are a handful of elite institutional investors who are guaranteed shares early in initial public offerings (IPOs) in exchange for a pledge to hold the stocks for a period. (end) mk.hb KUNA 201410 Jan 13NNNN

 Print
  Email
 Save
Share
Share
Honoring Kuwait 2014


KUNA publishes a book titled (His Highness Sheikh Sabah Al-Ahmad Al-Jaber Al-Sabah: A Humanitarian Leader) to commemorate the UN honoring of Kuwait's leader

kuna magazien


Most Read Most Emailed  
1.   ISIL militants attack Syrian forces near Deir Ezzor airport
2.   Khartoum demands immediate steps from Juba on rebels
3.   Obama, Saudi official discuss ISIL, Syria, Yemen
4.   Syrian troops suffer 50 fatalities in Idlib
5.   UN has honored Kuwait due to long record of humanitarian action -- diplomat
6.   Kuwait Energy announces new oil discovery in Egypt
    Photo Gallery

Minister of Commerce and Industry Dr. Abdulmohsen Al-Madaj

His Highness the Crown Prince Sheikh Nawaf Al-Ahmad Al-Jaber Al-Sabah attends Crown Prince Football Cup final

Kuwait Stock Exchange (KSE)

National Assembly Speaker Marzouq Ali Al-Ghanim receives Speaker of the National Assembly of Pakistan Sardar Ayaz Sadiq

Sheikh Duaij Al-Fahad Al-Sabah, the head of the club's drag race committee

Chairperson of the Trustees' Board, Sheikha Aida Salem Al-Ali Al-Sabah

Ambassador in Doha Metaeb Al-Mutotah

Assistant Undersecretary of the Information Ministry for Media Planning and Knowledge Development Mohammad Al-Awwash

KRCS delivers more aid to Syrian refugees

Kuwait celebrates 100th anniversary of first National Flag

Head of the KAC's Media and Public Relations Department Fayez Al-Enezi
Publications

WEATHER
PRAYER
CURRENCIES
KUWAIT AIRPORT
    Calendar
About KUNA KUNA SERVICES USEFUL LINKS KUNA ARCHIVE KUNA PUBLICATIONS
Home
About Kuna
Advertise
Contact Us
Kuna's Bureaus
Services
Term Of Use
Read The Whole Newscast
Pictures (during the week)
FTP Service
KUNA training center
KUNA Reader
SMS Services
الكويت فى ذاكرة الأيام
Job Application
Careers
Arab News Agencies
International News Agencies
Governmental Institutes
Banks in Kuwait
News Paper
Local Companies
other useful links
Prayer Times
News Archive
Other News Services
Today In Kuwait's History
Events
Training Sessions
Videos
All KUNA right are reserved © 2012. This site is designed and published by IDS