Fubon Financial Holding Co (富邦金控) yesterday said in a filing to the Taiwan Stock Exchange its life insurance unit had been awarded an additional investment quota of US$150 million by Beijing to directly invest in Chinese securities as a qualified foreign institutional investor (QFII).
Fubon Life Insurance Co (富邦人壽) secured the investment quota from China’s State Administration of Foreign Exchange on Thursday last week, allowing it to invest in yuan-denominated financial products, including A shares, corporate bonds and bank debentures.
Fubon Life previously secured a quota of US$150 million in May last year under the QFII program, bringing its total investment quota to US$300 million, according to Fubon Financial.
Fubon Asset Management Co (富邦投信), another unit under the nation’s second-largest financial service provider by assets, already secured US$250 million in the last two years as a QFII investor.
Meanwhile, CTBC Life Insurance Co (中信人壽) also secured an investment quota of US$100 million last week, according to China’s State Administration of Foreign Exchange’s Web site.
Thus far, nine Taiwanese life insurers have been granted a total investment quote of US$1.65 billion from Beijing’s foreign exchange authorities to access China’s stock market.
The other insurers are Cathay Life Insurance Co (國泰人壽), Shin Kong Life Insurance Co (新光人壽), Taiwan Life Insurance Co (台灣人壽), Nan Shan Life Insurance Co (南山人壽), China Life Insurance Co (中國人壽), Mercuries Life Insurance Co (三商美邦人壽) and Transglobe Life Insurance Inc (全球人壽).