China approves Qatar sovereign fund to buy a tenth of its top asset manager
HONG KONG - China has given approval for Qatar's sovereign wealth fund to acquire a stake of 10% in its second-largest mutual fund company, the first such investment in the sector by a major Middle East investor at a time of rising tension with the West.
China's securities watchdog approved the Qatar Investment Authority (QIA) to become a stakeholder in China Asset Management Co (ChinaAMC), an official filing by the China Securities Regulatory Commission showed on Thursday.
The price of the stake was not disclosed. Earlier filings by ChinaAMC's largest shareholder showed the 10% ownership would not be priced at less than $490 million.
In April last year Reuters first reported the sovereign fund had agreed to invest in the Chinese fund house.
QIA will become the third-biggest shareholder in ChinaAMC, which has assets of more than 1.8 trillion yuan ($249.98 billion)，and provides mutual funds and exchange traded funds to retail and institutional investors.
The deal was approved amid a flurry of activity between China and Gulf countries aiming to deepen political, economic and financial ties. ($1 = 7.2005 Chinese yuan renminbi)
(Reporting by Selena Li; Editing by Clarence Fernandez)
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Khaleej Times
6 hours ago
- Khaleej Times
China's rare earth export curbs hit Europe's auto industry
Some European auto parts plants have suspended output and Mercedes-Benz is considering ways to protect against shortages of rare earths, as concerns about the damage from China's restrictions on critical mineral exports deepen. China's decision in April to suspend exports of a wide range of rare earths and related magnets has upended the supply chains central to automakers, aerospace manufacturers, semiconductor companies and military contractors around the world. The move underscores China's dominance of the critical mineral industry, key to the green energy transition, and is seen as leverage by China in its trade war with U.S. President Donald Trump. China produces around 90% of the world's rare earths. EU trade commissioner Maros Sefcovic said on Wednesday that he and his Chinese counterpart had agreed to clarify the rare earth situation as quickly as possible. "We must reduce our dependencies on all countries, particularly on a number of countries like China, on which we are more than 100% dependent," said EU Commissioner for Industrial Strategy Stephane Sejourne. "The export (curbs) increase our will to diversify," he said as Brussels identified 13 new projects outside the bloc aimed at increasing supplies of metals and minerals essential. Earlier on Wednesday, Mercedes-Benz production chief Joerg Burzer said he was talking to the carmaker's top suppliers about building "buffers" such as rare earth stockpiles to protect against potential threats to supply. Mercedes was currently not affected by the shortage. BMW said that part of its supplier network was affected by the shortage but that its own plants were running as normal. Europe's auto supplier association CLEPA said several production lines have been shut down after running out of supplies, the latest to warn about the growing threat to manufacturing due to the controls. Of the hundreds of requests for export licenses made by auto suppliers since early April, only a quarter have been granted so far, CLEPA added, with some requests rejected on what the association described as "highly procedural grounds". It did not identify the companies but warned of further outages. While China's announcement in April coincided with a broader package of retaliation against Washington's tariffs, the measures apply globally and are causing worry among business executives around the world. German and U.S. automakers have complained that the restrictions imposed by China threaten production, following a similar grievance from an Indian EV maker last week. Many are lobbying their governments to find a quick solution and are scrambling to find alternatives. Some companies only have enough supplies to last a few weeks or months, Wolfgang Weber, CEO of Germany's electrical and digital industry association ZVEI, said in an emailed statement. "Companies currently feel abandoned by politicians and are partly looking for solutions to their difficult situation on their own in China," he said. Swedish Autoliv,, the world's biggest maker of airbags and seatbelts, said its operations are not affected, but CEO Mikael Bratt said he has set up a task force to manage the situation. Reliance on China Automakers from General Motors to BMW and major suppliers like ZF and BorgWarner are researching or have developed motors with low- to zero rare earth content in a bid to cut their reliance on China, but few have managed to scale production to bring down costs. BMW has deployed a magnet-free electric motor for its latest generation of electric cars, but still requires rare earths for smaller motors powering components like windshield wipers or car window rollers. German carmaker Volkswagen said it is not seeing any shortages at the moment. China's slow pace of easing its critical mineral export controls has become a focus of Trump's criticism of Beijing, which he says has violated the truce reached last month to roll back tariffs and trade restrictions. Trump has sought to redefine the United States' trading relationship with its biggest economic rival by imposing steep tariffs on billions of dollars of imported goods in hopes of narrowing a trade deficit and bringing back lost manufacturing. Trump imposed tariffs as high as 145% against China only to scale them back after a selloff in stock, bond and currency markets over the sweeping nature of the levies. China has responded with its own tariffs and is leveraging its dominance in key supply chains to persuade Trump to back down. Trump and Chinese President Xi Jinping are expected to talk this week to try to iron out their differences and the export curbs are expected to be high on the agenda. In a social media post on Wednesday, Trump said that Xi is "VERY TOUGH, AND EXTREMELY HARD TO MAKE A DEAL WITH", highlighting the fragility of the deal.
Khaleej Times
6 hours ago
- Khaleej Times
Trump calls China's Xi tough, 'hard to make a deal with'
U.S. President Donald Trump called China's Xi Jinping tough and "extremely hard to make a deal with" on Wednesday, exposing frictions after the White House raised expectations for a long-awaited phone call between the two leaders this week. "I like President Xi of China, always have, and always will, but he is VERY TOUGH, AND EXTREMELY HARD TO MAKE A DEAL WITH," Trump said in a social media post. White House spokeswoman Karoline Leavitt said on Monday Trump would likely speak with Xi this week to iron out differences over last month's tariff agreement in Geneva, including the handling of critical minerals. Trump's early morning post on Truth Social did not bode well for a speedy resolution of their differences. Leavitt was the third top Trump aide to forecast an imminent call between the leaders of the two largest global economies, but Xi has proved an elusive interlocutor. China said in April that the two leaders had not had a conversation recently. A U.S. trade court last week ruled that Trump overstepped his authority in imposing the bulk of his tariffs on imports from China and other countries under an emergency powers act. Less than 24 hours later, a federal appeals court reinstated the tariffs, saying it was pausing the trade court ruling to consider the government's appeal.
Arabian Business
6 hours ago
- Arabian Business
Middle East tourism spend to hit $350bn by 2030 amid luxury, sports, and business travel boom
Middle East tourism spending is projected to surge by 50 per cent to reach $350bn by 2030, according to the new ATM Travel Trends Report 2025, compiled by Tourism Economics for Arabian Travel Market (ATM). The report highlights the region's exceptional post-pandemic rebound and long-term growth potential, driven by luxury travel, business events, and sports tourism. Spending on tourism across the Middle East is already on track to exceed pre-pandemic levels by 54 per cent this year. Middle East tourism spending From 2025 to 2030, the market is expected to grow at more than 7 per cent annually. Danielle Curtis, Exhibition Director ME, Arabian Travel Market, said: 'The report's findings confirm that travel growth in the Middle East is incredibly strong, with annual growth averaging more than 7 per cent through 2030. 'Bold national visions, game-changing developments, and enhanced connectivity are some of the key factors driving this momentum.' Key insights from the report include: Inbound travel to the Middle East is set to grow 13 per cent annually, with India, the UK, and China among the top source markets Chinese leisure spending alone is forecast to grow 130 per cent by 2030 Tourism nights from Asia Pacific and Africa will more than double Business travel in the region is expected to grow 1.5 times faster than the global average, positioning the Middle East as a top global 'bleisure' hub Luxury travel is booming, with nearly 60 per cent of visitors choosing premium experiences. Over 170 luxury hotels already operate in the region, with dozens more in development in the UAE and Saudi Arabia Sports tourism is forecast to grow 63 per cent, fuelled by major events such as the 2034 FIFA World Cup in Saudi Arabia and a surge in interest in motorsports, golf, cycling, and esports Airlines are scaling up rapidly to meet demand: Emirates, Etihad, Qatar Airways, and Saudia have placed nearly 780 new aircraft orders with Boeing and Airbus, solidifying the region's role as a global aviation hub As the Middle East continues to attract high-spending tourists and host world-class events, it is cementing its position as one of the fastest-growing and most dynamic tourism regions on the planet.
