Others News
- Trust firms to obtain QDII nod
Date: 3-Sep-2007 Sources: (Shenzhen Daily)
THE government will issue licenses to several trust companies to participate in a program which lets domestic financial institutions help clients invest abroad, the Shanghai Securities News said Saturday.
Several domestic trust firms are at the final stage of preparations for launching their products under the Qualified Domestic Institutional Investor program (QDII) and are expected to win business licenses soon, the newspaper reported, citing a senior official.
Meanwhile, the government is also encouraging mainland trust firms to find foreign strategic partners and to cooperate with investment banks and private equity firms to develop deals and products, said Li Jianhua, deputy director of the non-banking division at China Banking Regulatory Commission.
The assets under management at 54 trust firms have reached 600 billion yuan (US$79.53 billion) so far this year, doubling from 300 billion yuan in the whole of 2006, the newspaper said.
The government introduced the QDII program last year largely to spur capital outflows as the country struggles with the consequences of a balance of payments surplus on the order of 10 percent of national income.
In April, the authorities announced they had decided to expand the QDII program to include trust firms, after banks, insurers and fund management companies had been approved for such services.
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