Bank of East Asia boards express investment train to China
[HONG KONG] Bank of East Asia, a commercial lender in Hong Kong, has been approved to invest in China's bond and stock markets in yuan as the world's second-largest economy steps up financial market liberalisation.
Participation from banks in China's Renminbi Qualified Foreign Institutional Investor (RQFII) will break the monopoly of local brokerage firms and fund houses, bringing in more competition as banks have large yuan deposits for investment.
Bank of East Asia (BEA), incorporated in Hong Kong in 1918 and with a market capitalisation of less than US$10 billion, will be allowed to invest in China's fixed income and A-share markets with yuan funds from the offshore market via the scheme.
Francis Ng, general manager and head of treasury markets division of the BEA, told Reuters it will use its own RMB funds to invest in the onshore market under RQFII.
- wong chee tat :)
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