Franklin Resources, an investment management arm of the Franklin and Templeton mutual funds, has received a new license to invest in Chinese stocks and bonds. The earlier license, which the company received from the China Securities Regulatory Commission, has expired – reported Bloomberg.
The qualified foreign institutional investors or QFII license was given to Templeton Investment Counsel, a unit of Franklin Templeton Investments in 2004.
The Shanghai Composite Index has rallied 57% so far this year. Buoyed by this performance, as many as 80 foreign firms have been given green signal to invest in Chinese stocks and bonds, under the so-called QFII program. Citigroup, Goldman Sachs and HSBC are also among them.
The company stated that it will also invest in China through private equity and by purchasing shares of firms trading in the Hang Seng China Enterprises Index in Hong Kong.
