Monday, June 25, 2012

Qatar to put 5 billion U.S. in Chinese Investment Fund

Qatar wants to invest 5 billion in China's Qualified Foreign Institutional Investor (QFII) scheme. This is the main mode by which foreign investment flows into the Chinese stock and bond market.
No doubt Qatar has plenty of petro dollars seeking somewhere to gain a good return for the country. However Qatar's energy and industry minister said that the income invested will come from sellling liquefied gas to China among other sources.
At present there is a cap of one billion for each investor in the Chinese fund. However, China hopes to raise the cap. There are a total of 37 qualified foreign investors hoping to increase investment by a total of 12.54 billion dollars.
The QFII program was launched in 2003. China has been trying to increase foreign capital inflows into the country. The fund is considering raising the stake that foreign capital can have in a company held in the fund from 20 per cent to 30 per cent. For much more see this article.

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