MILAN, June 7 Intesa Sanpaolo, through
its asset management unit Eurizon Capital, will be the first
Italian bank to trade directly in onshore Chinese financial
markets, the bank said on Friday.
Eurizon has obtained the status of "qualified foreign
institutional investor", becoming one of around 200 entities
that can buy bonds and trade shares in China's $3 trillion
onshore stock market, and is authorised to invest $100 million
in stocks, government and corporate bonds.
"Asset management in China will be very positive for Eurizon
given the growth in private wealth there," said Alberto Gallo,
head of European macro credit research at RBS in London.
Beijing is loosening long-standing restrictions on the
trading of so-called A-shares, which are priced in yuan and
traded in Shanghai and Shenzhen, to attract more stable,
Quotas assigned by Chinese authorities vary in size but are
capped at $1 billion per investor. China has so far handed out
investment quotas totalling $42 billion.
"Eurizon maintains a positive outlook on the Chinese market,
both with regard to the equities of the A-shares, as well as for
the appreciation of the exchange rate," Eurizon's managing
director Mauro Micillo said in a statement.
(Reporting By Isla Binnie; Editing by Greg Mahlich)