Insurance company Fidelidade authorised to invest in Chinese Stock Market

21 January 2016

Portuguese insurance company Fidelidade, acquired from the Caixa Geral de Depósitos (CGD) by Chinese group Fosun, has become the first company in Portugal to have direct exposure to the Chinese stock market, after receiving a quota of US$700 million to invest in the Shanghai and Shenzhen stock markets, according to information provided to the markets.

Fidelidade has been authorised to invest in the Chinese market through the Qualified Foreign Institutional Investor mechanism, a programme created in 2003 that allows a small group of foreign companies to invest in ‘A Shares’ denominated in the Chinese currency (yuan) and comprises US$81,1 billion in capital.

Composed of 294 companies, the group includes the largest banks and insurance companies in the world, from the US to Australia.

Fidelidade can now offer customers the opportunity to invest in the Chinese stock market, designing products to do that, invest for itself, or lease part of the quota to other Portuguese groups.

“Fidelidade thus becomes the foreign insurance company with the largest quota to invest in the Chinese capital market,” Pedro Dinis, a Portuguese analyst from Shanghai-based Z-Ben Advisors told Lusa.

Fidelidade has a 30 percent share of the Portuguese insurance market. (macauhub/CN/PT)