Shinhan has new status as investor in Chinese yuanShinhan Bank announced Wednesday it invested in Chinese stocks as an RMB Qualified Foreign Institutional Investor (RQFII), the first Korean bank to do so.
RQFII is a foreign investor who obtains yuan funds from outside China and uses them to invest in the Chinese stock market.
Shinhan’s investment targets are stocks and bonds on the Shanghai and Shenzhen stock exchanges. It is also planning to deal in the China Interbank Bond Market (CIBM).
The bank’s new investor status is part of growing Korean and Chinese financial cooperation. Korea is becoming a financial hub for the yuan outside China.