Taiwan Life Insurance Co (台灣人壽) said yesterday it was granted a license under China’s qualified foreign institutional investor (QFII) program, which would allow it to directly invest in Chinese securities in a bid to enhance its capital-use efficiency while boosting investment returns.
The Taipei-based insurer said in a stock exchange filing that it had secured the license from the China Securities Regulatory Commission. The filing did not say when the company — which began its QFII application late last year — would start investing in Chinese securities.
However, previous experience from other Taiwanese companies that have gained China’s QFII licenses, such as Fubon Securities Co (富邦證券) and Capital Securities Corp (群益證券), indicate that Taiwan Life would have to wait for an investment quota from China’s State Administration of Foreign Exchange before it can invest in yuan-denominated financial products, including A-shares, corporate bonds and bank debentures.
Other Taiwanese firms, such as Cathay Securities Investment Trust Co (國泰投信), Fuh Hwa Securities Investment Trust Co (復華投信), Shin Kong Life Insurance Co (新光人壽), China Life Insurance Co (中國人壽) and Polaris Securities Co (寶來證券), have also secured QFII status to access China’s stock market, which is almost four times bigger than the local bourse.