Two more get yuan investment licences
1 September 2003
HSBC and Deutsche Bank have moved closer to being able to trade in yuan-denominated investments, receiving Qualified Foreign Institutional Investor (QFII) licences in August. The banks must now apply for investment quotas from the State Administration of Foreign Exchange Control. HSBC said it would ask initially for a US$100m quota that it intends to invest in government bonds and equities. The bank has appointed Guotai Jinan Securities as its broker and China Construction Bank as its custodian.
Switzerland's UBS, Japan's Nomura Holdings, and Morgan Stanley, Citigroup and Goldman Sachs of the US were all granted licences earlier this year. These five have so far received a total of US$775m in investment quotas. UBS and Citibank have reportedly already executed trades.