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SOFAZ starts investing in Chinese Yuan

03 July 2015 08:00 (UTC +04:00)

In 2014, the People’s Bank of China (PBC) issued a license for an investment up to 3 billion yuan, and a contract was signed for the purchase and custody of yuan denominated sovereign and agency bonds. On July 1 this year, SOFAZ made first investments in Chinese Yuan.

Going forward, Sofaz is planning to gain exposure to Chinese equity markets. To this end, we have taken steps to obtain the “Qualified Foreign Institution Investors” license granted by the China Securities Regulatory Commission.

In accordance with the "Rules on management of foreign currency assets of the State Oil Fund of the Republic of Azerbaijan" approved by the Presidential Decree No. 511 dated June 19, 2001, funds in SOFAZ’s investment portfolio can be invested in securities that are denominated in currencies of G7 countries (USA, Germany, Great Britain and Kingdom Northern Ireland, France, Italy, Canada and Japan), European Monetary Union member countries, Russia and Turkey, as well as the countries with a long-term credit rating not less than “A” (Standard & Poors, Fitch) or “A2” (Moody’s).