Eurizon Capital, through its Luxembourg-based subsidiary Eurizon Capital SA, has successfully completed the process of obtaining the status of Qualified Foreign Institutional Investor (QFII).
The qualification will allow Eurizon Capital to invest directly onshore in different asset classes in the Chinese financial market through its own funds, up to a total maximum amount of 100 million U.S. dollars.
The Managing Director of the Italian holding Eurizon Capital SGR, underlines the importance of this achievement: “Eurizon Capital SA is the first asset management company belonging to an Italian banking group to receive the prestigious QFII license, currently assigned to a selected and limited number of international operators. The achievement of this milestone was made possible by the Intesa Sanpaolo Group’s strategic desire to continue developing its market presence in the Chinese financial market”.
The QFII qualification permits access to the opportunities offered by the A-Share market, where many Chinese small-cap stocks are traded, especially on the Shenzhen market. Funds may also directly invest in fixed income securities, in both the government and corporate segments, with potential for attractive returns and diversification compared to the European and American markets. Finally, exposure to the renminbi will allow investors to make the most of the potential appreciation of the currency against the U.S. dollar.
Eurizon Capital already has a clear competitive advantage in its approach to stock selection in the Chinese market, thanks to a strong partnership with a local asset manager. In the process of selecting investments, Eurizon Capital will make use of the advisory services of Penghua Fund Management, a leader in the Chinese asset management industry. Eurizon Capital has been a shareholder in Penghua since 2007 with its strategic partner Guosen Securities, one of the main local financial institutions. Through this cooperation, Eurizon Capital SA was one of the first companies in Europe to launch a UCITS fund Dim Sum Bond, which invests in the offshore renminbi market.
News of Eurizon Capital’s achievement has been given wide coverage by both the Italian and foreign press. A few examples: Il Sole 24 Ore: “Azimut ed Eurizon, alleanze in Cina” (8 June); Italia Oggi: “Eurizon sbarca in Cina” (8 June); Global Investor Magazine: “Eurizon Capital acquires QFII license” (7 June); Reuters: “Intesa Sanpaolo to be first Italian bank to trade directly in China” (7 June).