Qatar’s sovereign wealth fund is
applying for a licence to invest US$5bn in China, one of a number of Gulf
countries looking to increase their investment in the Asian superpower.
The application for a licence
comes under the Qualified Foreign Institutional Investor (QFIIs) programme,
according to a report on the China Securities Journal’s website.
In May, Abu Dhabi was also named
as one of a number of foreign financial institutions looking to increase their
investment in China.
The State Council, China’s
Cabinet, in April increased total QFII quotas to US$80bn from US$30bn, opening
the door for foreign firms to gain access to the fast growing market. So far,
the CSRC has granted QFII licenses to 172 foreign investors since the program
started in 2002.
The current cap for individual investors is set by Chinese regulators at US$1bn.
According to the China Securities
Journal, Abu Dhabi Investment Authority was among 37 QFIIs which have applied
to increase their quotas by a combined US$12.54bn.
A further 33 investors, worth a
combined US$10.25bn, are also applying for quotas for the first time, the
report added.
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