|
BIZCHINA / Center |
Guotai Junan applies for QDII licenseBy Shangguan Zhoudong (chinadaily.com.cn)
Updated: 2007-07-23 15:33 Guotai Junan Securities Co Ltd, one of China's biggest securities companies, has applied for the domestic institutional investors (QDII) license, China Securities News reported today. Insiders said that other securities companies are also applying for the QDII licenses, but securities companies with overseas branches are expected to get licenses first. The Hong Kong market will benefit from favorable QDII policies because investment managers are relatively familiar with the Hong Kong market, they said. Currently, securities companies including Guotai Junan, Shenyin & Wanguo Securities Co Ltd and China Merchants Securities Co Ltd have set up subsidiaries in Hong Kong. Haitong Securities just obtained approval from the China Securities Regulatory Commission to launch a Hong Kong subsidiary. Starting July 5, the regulator allowed eligible financial firms to get QDII licenses. This scheme has so far been limited to banks and insurers. For eligibility, securities companies must have a net registered capital of no less than 800 million yuan (US$105 million) and at least a year experience in collective assets management, according to the rule. It is estimated that a score of securities will meet the standards. They will also be able to join banks and insurers to launch investment products. |
|