Stocks News
- Insurers get nod to invest in HK stocks
Date: 8-Nov-2007 Sources: (Shenzhen Daily)
PING An Insurance and smaller Huatai Insurance have won government approval to invest in Hong Kong stocks on behalf of clients, the Shanghai Securities News reported yesterday.
Ping An and Huatai are expected to launch overseas investment products under the Qualified Domestic Institutional Investor (QDII) program at the end of this month or in early December, the newspaper quoted unnamed sources as saying.
They have been given permission to invest no more than 5 percent of their total asset values at the end of last year in Hong Kong-listed stocks, the report said. Investment in other stock markets remains forbidden.
As a result, Ping An is expected to invest up to 22 billion yuan (US$3 billion) for its clients in Hong Kong stocks, while Huatai's ceiling will be 960 million yuan, the paper said.
Ping An had already obtained a license to invest in overseas markets under the QDII program, but had not won approval to launch equity investment products for clients.
Ping An is China's second-biggest life insurer, while Huatai mainly focuses on property insurance.
Regulators have also given mutual funds, banks and brokerages permission this year to invest in Hong Kong stocks under the QDII program.
Separately from QDII, which is for institutions, the government has also proposed a 'through train?program that would let individual mainland investors buy Hong Kong stocks directly.
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