A joint venture asset manager between South Korea's No. 2 financial services
firm Shinhan Financial Group Co. and global banking group BNP Paribas SA. has
received qualified investor status from Chinese authorities, opening the door
for its investment in Chinese stock markets, a government document showed
Monday.
Shinhan BNP Paribas Asset Management Co. received the status
of "qualified foreign institutional investor" (QFII) from the China Securities
Regulatory Commission, according to an updated list of QFIIs released by the
commission.
A foreign investor usually needs to wait months to receive
its investment quota from the Chinese State Administration of Foreign Exchange
after it is granted a license to join the QFII program.
Shares in
mainland China-based companies that trade on Chinese stock exchanges, such as
the Shanghai Stock Exchange and the Shenzhen Stock Exchange, are generally only
available for purchase by mainland citizens.
Foreign investment in
those shares, called A-shares, is only allowed through a tightly-regulated
structure under the QFII system.
Seven South Korean asset management
firms were earlier granted licenses to invest in the mainland Chinese stock
market.
They are Hanwha Investment & Securities Asset Management,
Mirae Asset Management, Samsung Asset Management, Korea Investment &
Securities Asset Management, Toyang Asset Management, KB Asset Management and
KTB Asset Management.
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