The FINANCIAL -- Swiss Re has been confirmed as the first Swiss company to be granted a Renminbi Qualified Foreign Institutional Investor (RQFII) license.
With this licence in place Swiss Reinsurance Company Ltd. can proceed and apply for a quota to invest in the Chinese domestic securities markets, predominately into the fixed income market. Currently China's bond market is one of the world's largest, accessible only to foreign investors through specifically defined programmes, according to Swiss Re.
Swiss Re's Group Chief Investment Officer, Guido Fürer, says: "Gaining access to the Chinese financial markets – as they grow in significance – has become vital for global long-term investors. The RQFII programme will further complement Swiss Re's liability matching investment capabilities. This is an important step in Swiss Re's business aspirations under our High Growth Market strategy."
The grant of the license follows an agreement reached in January between Switzerland and China to establish a quota of RMB 50 billion that Switzerland-based financial institutions can use to invest in China‘s domestic capital markets. The Swiss National Bank described the agreement at the time as a sign for fresh progress in the bilateral financial cooperation between China and Switzerland.