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Japan Investment Approved for China Banks

The Chinese banking regulatory commission signs a deal to allow banks to invest in Japanese securities. Nikkei jumped nearly 600 points on the news

The China Banking Regulatory Commission has signed a memorandum with Japan's Financial Services Agency, signalling an expansion of the country's qualified domestic institutional investor (QDII) programme. Japan joins Hong Kong, the UK and Singapore as approved investment markets for Chinese banks.

Under the existing templates with UK and Hong Kong authorities, banks will be allowed to launch funds with allocations to listed equities, fixed income, or registered funds. However, the scheme does not permit investments in hedge funds and other alternative investments at this stage.