KDB to invest in mainland Chinese stocks

[THE INVESTOR] The Korea Development Bank, a state-owned policy bank, said on July 7 that it has started investing in China’s onshore stock markets as a renminbi qualified foreign institutional investor.

The KDB plans to put some 1 billion yuan of funds into securities and bonds listed on Shanghai and Shenzhen Stock Exchange as well as China’s interbank bond market. 

“As a policy bank representing Korea, we will play a major role in the financial cooperation between the two countries. The investment is aimed at expanding our foothold in overseas markets in response to the opening of China’s capital market,” the bank said in a press release.

The policy lender received the RQFII license from China Securities Regulatory Commission in June last year which allows approved fund managers overseas to use funds raised outside the mainland, in Chinese yuan, to invest in China’s financial markets.

By Park Han-na (hnpark@heraldcorp.com)