Swiss Re, one of the world’s largest reinsurers, has been confirmed as the first Swiss company to be granted a renminbi (RMB) qualified foreign institutional investor (RQFII) licence.
With this licence in place Swiss Re can proceed and apply for a quota to invest in the Chinese domestic securities markets, predominately into the fixed income market. China’s bond market is one of the world’s largest, but accessible only to foreign investors through specifically defined programmes.
“Gaining access to the Chinese financial markets – as they grow in significance – has become vital for global long-term investors,” said Swiss Re’s group chief investment officer, Guido Fürer.
“The RQFII programme will further complement Swiss Re’s liability matching investment capabilities. This is an important step in Swiss Re’s business aspirations under our high growth market strategy.”
The award of the licence follows an agreement reached in January between Switzerland and China to establish a quota of RMB50bn that Switzerland-based financial institutions can use to invest in China‘s domestic capital markets.
The Swiss National Bank (SNB) described the agreement at the time as a sign for fresh progress in the bilateral financial cooperation between China and Switzerland.
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