SHANGHAI: US financial giant Citigroup Inc has become the second foreign bank to invest in China’s main stock and debt markets under a watershed reform to admit overseas funds.
The bank’s brokerage arm, Citigroup Global Markets, began trading in the US$500bil yuan-denominated A share and debt markets on Tuesday, following last week’s investment by Swiss banking group UBS AG, a Citigroup spokeswoman said.
Citigroup and UBS are currently the only foreigners trading in A shares under China’s Qualified Foreign Institutional Investor (QFII) scheme, which grants overseas investors conditional access to previously closed markets.
The US bank can invest a maximum of US$75mil under the scheme.
Foreign investors can trade yuan-currency A shares, treasury debt and corporate bonds under QFII. Previously, they were limited to the tiny US$11bil hard-currency B share market. – Reuters
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