China grants new investment licenses to five overseas firms in February

BEIJING: China granted new investment licenses to five foreign institutions in February to invest in its stock and bond markets, the securities regulator said on Saturday.

The Chinese Securities Regulatory Commission awarded the licenses to Taiwan's Transglobe Life Insurance Inc and Cathay Life Insurance Co Ltd, Malaysia's Public Mutual Berhad, and Japan's Meiji Yasuda Asset Management Company Ltd and Sumitomo Mitsui Banking Corporation, it said on its website.

The institutions will still need to receive quotas from the foreign exchange regulator before they can start investing.

China has approved a combined quota of $24.6 billion in investment by 129 foreign investors under its Qualified Foreign Institutional Investor (QFII) system, the regulator said on Friday. China introduced the QFII system in 2003.

Beijing has been easing its controls on inbound investment recently as foreign capital inflows slow, in line with broader efforts to liberalise its capital markets.

Domestic media reported in January that China may soon finalise rules governing capital gains taxes on QFII and was soliciting opinions on a draft.

China controls capital flowing in and out of the country to protect it against financial turbulence, although Beijing has repeatedly pledged to speed up its liberalisation.