In a survey conducted by ChinaQFII, the resulted indicated investor favoritism in the financial industry. Over 200 investors in the investor scheme by the Hong Kong company participated in the survey that offered a look at investor expectations in China. QFII stood for Qualified Foreign Institutional Investor.
Founding chief executive of ChinaQFII William Kwok said, "It is not surprising to see financials remain the favourite sector, given that QFIIs are [themselves] financial institutions. Some QFIIs have partnered Chinese financial companies to set up joint ventures in securities brokerage, asset management and investment banking, making them more inclined to choose financials as their top pick."
QFII released the information, among its many other recent economic studies on its newest literature called "The China QFII Guidebook - China Deals Review." The literature was released yesterday by China QFII.
The book offered to provide insight about current investor movement in industries. For example, the consumer discretionary industry was found to be the second popular sector in foreign investors, with 16% of the data sample saying they would be investing in specialty items including luxury cars and jewellery. 30% of the investors chose to invest in the financial industry, while 13% of the investors preferred the information technology sector.
ChinaQFII predicted that total approved investment quota in five years under the QFII would increase from 1.5% of China's market capitalization now to 10%. In the same period, QFII investors would be more than doubled from 240 to over 500, QFII said. Investors under the renminbi QFII would grow from 47 to more than 100, Kwok had said.
Renminbi is the official currency of the People's Republic of China. Although the yuan had been regarded as the basic unit of renminbi, the former has now been referred as a synonym of the latter in international context. Renminbi could also go by the standard currency code CNY for Chinese yuan.
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