China's late August quota awards to foreign institutional investors looking to invest in domestic capital markets included an additional US$500 million for the Hong Kong Monetary Authority. (All monetary figures are in U.S. dollars.)
That award, on Aug. 28, made the HKMA the first foreign institutional investor to get more than $1 billion in quota capacity. The latest award brings the HKMA's total quota to $1.5 billion, following an initial quota of $300 million in March 2011, and a second quota of $700 million in July 2012.
Shanghai-based consulting firm Z-Ben Advisors said the move suggests China's regulators are increasingly focusing the qualified foreign institutional investor program launched more than a decade ago on assets owners as opposed to the money managers and investment banks that garnered the bulk of quotas awarded in the early years of the program.
Other institutional investors getting additional quotas at the end of August included China Life Insurance Co. Ltd. (Taiwan), with another $150 million; Taiwan Life Insurance Co., which got another $100 million, and Cathay Life Insurance Co. was awarded an additional $150 million. Meanwhile, the University of Notre Dame got an initial quota of $50 million.