Intesa Sanpaolo is first Italian bank to obtain onshore direct investment in China
Eurizon Capital,Intesa Sanpaolo’s unit for asset management, has successfully obtained the status of Qualified Foreign Institutional Investor(QFII) from China.
The QFII status will allow Eurizon to invest onshore in different asset classes in the Chinese financial market through its own funds, up to a total maximum amount of $100m.
As part of the operation, Intesa Sanpaolo has also appointed Gao Zhen, managing partner of Mandarin Capital China and adviser to Penghua Fund Management, in the new board of directors of Eurizon Capital.
The QFII qualification will also allow access to the A-Share market, where many Chinese small-cap stocks are traded, especially on the Shenzhen market.
Funds may also invest directly in fixed income securities, both government and corporate, with potential for attractive returns and diversification compared with European and American markets.
Eurizon will invest its allocation through new sub-funds within its range of Luxembourg funds within the next six months.
Intesa Sanpaolo’s asset management unit will also use the advisory services of Penghua Fund Management, a leader in the Chinese asset management industry of which Eurizon Capital has been a shareholder since 2007.
Intesa Sanpaolo Group’s strategic presence in China is long-standing and also extends to banking and insurance.
In addition to the representative office in Beijing and branches in
Hong Kong and Shanghai, Intesa Sanpaolo holds a direct stake in Bank of Qingdao and Union Life Insurance.
“Eurizon 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 such status was made possible by the Intesa
Sanpaolo Group’s strategic decision to continue expanding its market presence in the Chinese financial market,” Mauro Micillo, managing director of Eurizon said.