Swiss Re has just won the distinction of being the first Swiss company to win a RQFII (Renminbi Qualified Foreign Institutional Investor) license, the company said in a statement.
The reinsurer, the second-largest reinsurer in the world (says Bloomberg), is set to apply for a quota under the program so that it could invest in the country’s domestic securities market, specifically its fixed-income instruments.
“Gaining access to the Chinese financial markets – as they grow in significance – has become vital for global long-term investors. The RQFII program will further complement Swiss Re’s liability matching investment capabilities,” said Guido Fürer, Swiss RE’s Group investment officer.
China in January gave Switzerland a 50 billion yuan ($8.1 billion) quota that Swiss financial institutions can tap if they want to invest in renminbi-denominated stocks and bonds in the country.
Photo credit: Michaël Garrigues via Flickr