China grants Kuwait top investment quota

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Kuwait’s sovereign wealth fund Kuwait Investment Authority (KIA) has been awarded a $1.2 billion quota for direct investments into the Chinese securities market.

The Chinese regulator awarded Kuwait an additional $700 million quota on top of $300 million awarded in March 2012, state news agency Kuna reported on January 20. Kuwait said last year it was seeking a maximum quota of $1 billion.

The quota is the highest to be granted  by China to foreign investment entities. Kuwait’s sovereign wealth fund is one of only six such funds that have been granted the $1 billion quota. The other five institutions are Qatar Holding, Hong Kong Monetary Authority, Norway’s Norges Bank, Government of Singapore Investment Corporation and Singapore-based Temasek Fullerton.

Under new regulation issued by China’s securities regulator in late December 2012, only sovereign wealth funds are entitled to receive a quota above $1 billion. The quota allows the fund to buy yuan-denominated stocks and bonds.

KIA, which manages Kuwait’s oil generated-assets, said in October 2012 that the fund’s overall investment in Greater China including Hong Kong has grown nearly eight times to $15 billion since its entry into the Hong Kong market in 2000, with setting its sights on hitting $20 billion this year. For mainland China alone, the figure has jumped to $8 billion from zero in the past six years.

Across Asia, KIA has so far participated as a cornerstone investor in Industrial and Commercial Bank of China, Agricultural Bank of China, AIA, CITIC Securities and the region’s biggest hospital operator, IHH Healthcare of Malaysia.

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Reading Time: 2 minutes

Kuwait’s sovereign wealth fund Kuwait Investment Authority (KIA) has been awarded a $1.2 billion quota for direct investments into the Chinese securities market.

Reading Time: 2 minutes

Kuwait’s sovereign wealth fund Kuwait Investment Authority (KIA) has been awarded a $1.2 billion quota for direct investments into the Chinese securities market.

The Chinese regulator awarded Kuwait an additional $700 million quota on top of $300 million awarded in March 2012, state news agency Kuna reported on January 20. Kuwait said last year it was seeking a maximum quota of $1 billion.

The quota is the highest to be granted  by China to foreign investment entities. Kuwait’s sovereign wealth fund is one of only six such funds that have been granted the $1 billion quota. The other five institutions are Qatar Holding, Hong Kong Monetary Authority, Norway’s Norges Bank, Government of Singapore Investment Corporation and Singapore-based Temasek Fullerton.

Under new regulation issued by China’s securities regulator in late December 2012, only sovereign wealth funds are entitled to receive a quota above $1 billion. The quota allows the fund to buy yuan-denominated stocks and bonds.

KIA, which manages Kuwait’s oil generated-assets, said in October 2012 that the fund’s overall investment in Greater China including Hong Kong has grown nearly eight times to $15 billion since its entry into the Hong Kong market in 2000, with setting its sights on hitting $20 billion this year. For mainland China alone, the figure has jumped to $8 billion from zero in the past six years.

Across Asia, KIA has so far participated as a cornerstone investor in Industrial and Commercial Bank of China, Agricultural Bank of China, AIA, CITIC Securities and the region’s biggest hospital operator, IHH Healthcare of Malaysia.

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