Shenzhen grants second batch of QDIE quota

    SHENZHEN has approved a second batch of 30 companies to buy financial assets and real estate abroad under the Qualified Domestic Investment Enterprise (QDIE) program, business media outlet Caixin reported on its website.

    The 30 companies have been awarded US$30 million in quota each, meaning they can invest a total of around US$1 billion overseas, Caixin said yesterday. Compared with the established Qualified Domestic Institutional Investor, a similar program that allows Chinese institutions to buy overseas stocks and bonds, QDIE gives investors a broader investment scope, including private equity, hedge funds and real estate, the article said. The first batch of QDIE licenses were granted to eight institutions early this year, Caixin said.

    China’s holdings of US debt hit 7-month low

    CHINA’S holdings of U.S. Treasury securities fell to the lowest level since February as the nation continued to pare its foreign exchange reserves to support the yuan.

    The biggest foreign holder of U.S. government debt had US$1.258 trillion in bonds, notes and bills in September, down US$12.5 billion from a month earlier, according to U.S. Treasury Department data released yesterday. Japan, the largest holder after China, also reduced its Treasury portfolio by US$19.9 billion to US$1.18 trillion, the lowest level since October 2013.

    CITIC Bank, Baidu to set up Internet bank

    CHINA’S Internet search giant Baidu Inc. is teaming up with China CITIC Bank Corp. to join the wave of online lenders altering a financial industry traditionally dominated by the big State banks.

    CITIC Bank will own a controlling stake in the planned Baixin Bank Co., with exact shareholdings yet to be determined, Shanghai-listed CITIC Bank said yesterday. The planned registered capital is 2 billion yuan (US$313 million) with regulatory approvals still required.

    Official taken away amid graft crackdown

    A SENIOR official at China’s securities regulator has been “taken away,” financial magazine Caixin reported.

    Citing unidentified sources, Caixin reported that it was not known whether Xi Longsheng, head of internal inspection at the China Securities Regulatory Commission (CSRC), was himself under scrutiny or assisting with an investigation into other people. The magazine also did not provide details of any authorities involved.