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UBS executes first Qualified Foreign Institutional Investor (QFII) transaction
UBS, the global investment bank, wealth manager and asset manager today placed the first order under China's recently introduced QFII programme to allow foreign investors to participate in China's domestic securities market.
The order for the purchase of four A-shares [ Baoshan Iron & Steel (600019), Shanghai Port Container (600018), Sinotrans Air (600270) and ZTE Corp (000063) ] was executed at 10:15am (Beijing time).
There was a short ceremony to mark the occasion which was attended by a number of local and international press and senior management of UBS.
"Today is an auspicious and historic day in the development of China's capital markets. It is a great honour for UBS to be the first institution to invest in China's domestic securities market through the QFII programme. QFII is a great tribute to the government's continuing programme of reform and opening of China's financial markets," said Rodney WARD, Chairman, Asia.
On 26th May 2003, UBS was the first institution to be approved as a QFII by the China Securities Regulatory Commission ("CSRC"). On 6th June, China's State Administration of Foreign Exchange ("SAFE") announced that it had approved a USD300 million initial quota for UBS.
"This is just a beginning," said John HOLLAND, Head of Asian Equities. "The response from clients has exceeded our expectations. We have seen very positive interest from a broad range of investors from around the world."
Responding to the needs of its clients, UBS provides a range of entry points to China's domestic investment market including:
- Direct participation through UBS's QFII facility; - Access product investments; and - Offshore A-share fund investments.
"The start of investment marks the beginning of an exciting new phase in the development of UBS's business in China. As the domestic securities market opens up and information becomes more available, we expect to see a significant increase in the level of investment by foreign institutions, given China's irresistible fundamentals," said Nicole YUEN, Head of China Equities.
Beijing,9 July 2003