Chinese banks approved to invest in Japanese stocks under QDII
The China Banking Regulatory Commission (CBRC), the main industry watchdog, and the Financial Services Agency of Japan (FSA) plan to establish a framework for regulatory cooperation related to the QDII (Qualified Domestic Institutional Investors) scheme.
Under the terms of agreement, the framework enables Chinese commercial banks to conduct wealth management business in Japan, which marks a further expansion in China’s QDII scheme.
Based on this plan, the FSA held its first periodic meeting with the Chinese regulatory authorities in January, aiming to enhance bilateral cooperation in rapidly growing Asian markets.
In China, domestic financial institutions have to be authorized as QDIIs by the CBRC in order to invest overseas. The CBRC extended the investment area allowed under QDII from Hong Kong to the U.K.’s stock market in December.
Tags: investment, QDII