Kuala Lumpur, 23 June 2010
Malaysia recognised as approved investment destination by China
China has recognised Malaysia as an approved investment destination under China’s Qualified Domestic Institutional Investor (QDII) scheme administered by the China Banking Regulatory Commission (CBRC).
The recognition marks a major step forward for the Malaysian capital market as it will facilitate the flow of Chinese funds into Malaysia and open up business opportunities for the Malaysian capital market intermediaries.
Securities Commission Malaysia (SC) Chairman Tan Sri Zarinah Anwar and CBRC Chairman Mr Liu Mingkang signed the Letters of Exchange in Beijing today to formalise the recognition.
Bursa Malaysia Chairman Tun Mohamed Dzaiddin Haji Abdullah, the Malaysian Ambassador to China Datuk Iskandar Sarudin, Deputy Secretary-General (Policy) of the Ministry of Finance Datuk Latifah Datuk Abu Mansor and senior SC officials attended the signing.
At the same time, the China Securities Regulatory Commission (CSRC) has also confirmed that based on its existing Memorandum of Understanding (MOU) with the SC, Malaysia is also an approved investment destination under the QDII programme administered by the capital market regulator.***
QDII is a scheme which enables Chinese nationals to invest in overseas markets through approved institutions. With the recognition, approved institutions regulated by CBRC and CSRC may now invest funds pooled from their clients into Malaysian securities, including equities, fixed income products and collective investment schemes approved by the SC.
Such Chinese institutions may also engage the services of licensed Malaysian fund managers to assist with QDII investment matters. The potential inflows of Chinese funds will contribute to increased liquidity in the Malaysian market.
Tan Sri Zarinah said: “The QDII programme presents a major opportunity for Malaysian capital market intermediaries to gain access to the Chinese market. They should therefore make full use of the opportunity to broaden their reach to this new pool of investors.”
With the designation, Malaysia now joins the ranks of 10 other QDII recognised jurisdictions under the CBRC. They are Australia, Canada, Hong Kong, Germany, Japan, Luxembourg, Singapore, South Korea, the United Kingdom and the United States.
*** The SC and the CSRC signed the MOU regarding Securities and Futures Regulatory Cooperation on 18 April 1997
|Securities Commission Malaysia Chairman Tan Sri Zarinah Anwar and China Banking Regulation (CBRC) Chairman Liu Mingkang exchange documents after signing the Letters of Exchange in Beijing on 23 June 2010. With the signing, China now recognises Malaysia as an approved investment destination under CBRC’s Qualified Domestic Institutional Investor scheme, a major step forward for the Malaysian capital market.|
SECURITIES COMMISSION MALAYSIA