Tue, Apr 24, 2012 - Page 12 News List

China gives Cathay Life Insurance QFII investment quota

FOURTH:The approval allows Cathay Life to invest in yuan financial products, including A shares, corporate bonds and bank debentures

By Kevin Chen  /  Staff reporter

Cathay Financial Holding Co (國泰金控), the nation’s largest financial services provider, yesterday said its life insurance unit had been awarded an investment quota of US$150 million by China to directly invest in Chinese securities as a qualified foreign institutional investor (QFII).

The Taipei-based company said in a filing to the Taiwan Stock Exchange that Cathay Life Insurance Co (國泰人壽) had secured the investment quota from China’s State Administration of Foreign Exchange, allowing it to invest in yuan-denominated financial products, including A shares, corporate bonds and bank debentures.

The latest announcement made Cathay Life Insurance the fourth Taiwanese life insurer to have secured a QFII investment quota from China, after Shin Kong Life Insurance Co (新光人壽), Taiwan Life Insurance Co (台灣人壽) and China Life Insurance Co (中國人壽) were each awarded a US$100 million quota last month.

Fubon Life Insurance Co (富邦人壽), MassMutual Mercuries Life Insurance Co (三商美邦人壽) and Aegon Life Insurance (Taiwan) Inc (全球人壽) have also secured QFII licenses from the China Securities Regulatory Commission, but are still waiting for an investment quota from Beijing’s foreign exchange authorities.

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