The State Administration of Foreign Exchange has granted approval to Deutsche Bank and HSBC Holdings to invest up to US$50m in China's main stock markets. Later, ING stated that it, too, had been approved by the China Securities Commission as the eighth member of the Qualified Foreign Institutional Investor scheme.
The eight banks are allowed to trade in the A-share market – yuan-denominated shares that were previously restricted to domestic investors only. The other five institutions that have already been given quotas are Nomura Holdings of Japan, American firms Morgan Stanley and Goldman Sachs, and two branches of UBS of Switzerland.
UBS is negotiating with regulators in China to increase the amount it has been approved to invest in China's stock markets under the QFII scheme above its current maximum of US$300m, the Financial Times said. The bank is also asking for an extension of the time for raising money from clients.