Ashmore Investment granted approval on QFII status

Oct. 19, 2009 (China Knowledge) - UK-based Ashmore Investment Management Limited has been granted the status of qualified foreign institutional investment, the Shanghai Securities News reported today.

The Industrial and Commercial Bank of China<601398><1398> will act as the custodian bank, according to the China Securities Regulatory Commission.

The new approval brought the total number of foreign investors under China's QFII program to 88.

China's QFII camp has been expanding continuously this year, with 12 overseas institutions approved as QFII so far this year. In June alone, three foreign companies, namely Templeton Investment Advisory Co Ltd, BEA Union Investment Management Limited and the Sumitomo Trust & Banking Company Limited, were ratified as QFIIs.

Earlier this month, China relaxed rules on inbound portfolio investment, raising the upper limit on securities investment by a single qualified institutional investor to US$1 billion. The lock-up period for foreign insurers, pension funds and mutual funds, is also shortened to three months from one year previously.