Mainland banks cleared to invest in US securities

Regulators in China and the US signed an agreement Monday that will lay the groundwork for allowing mainland investors to buy and sell US securities, Bloomberg reported. The agreement, which marks a further expansion of the qualified domestic institutional investor (QDII) program, will enable Chinese banks to buy US-listed stocks and mutual funds for their clients. Since December, the China Banking Regulatory Commission has extended the QDII program beyond Hong Kong, adding Singapore, Japan and the UK to the list of countries approved for investment by mainland commercial banks. The QDII expansion comes after four QDII funds posted combined losses of US$1.6 billion in the fourth quarter of 2007.