China and Qatar Forge a New Era of Relations around High Finance By Chris Zambelis

China and Qatar Forge a New Era of Relations around High Finance

By Chris Zambelishttp://www.jamestown.org/programs/chinabrief/single/?tx_ttnews[tt_news]=39994&tx_ttnews[backPid]=25&cHash=5f0cd84e6263c80021318b885c501ce1

 
The impetus underlying China’s manifold interests in the Middle East remains a topic of close scrutiny. A series of quiet yet important developments emanating from China’s relationship with Qatar—one of the region’s smallest countries in both population and area—is emblematic of the growing complexity of China’s role in the Middle East. In early October, the China Securities Regulatory Commission (CSRC) and State Administration of Foreign Exchanges (SAFE) announced they had approved Qatar’s request to attain Qualified Foreign Institutional Investor (QFII) status to operate in China (China Securities Journal [Beijing], October 11). Under the auspices of Qatar Holding (QH), the overseas investment arm of its sovereign wealth fund (SWF) the Qatar Investment Authority (QIA), Qatar formally submitted a request to Beijing in June to invest up to $5 billion in Chinese stocks, bonds and other securities. Being afforded QFII status will make Qatar the largest foreign investor in Chinese capital markets (Financial Times, June 25). Taken into the context of the peculiarities of Qatar, a financial powerhouse that is exerting disproportionate influence well beyond its size in world affairs, this latest chapter of Sino-Qatari relations warrants further examination.

 

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