THE China Securities Regulatory Commission has approved Penghua Fund Management Co. and Lion Fund Management Co. to invest funds overseas under the Qualified Domestic Institutional Investor (QDII) program.

    The two Shenzhen-based funds said in separate statements yesterday the approval clears the way for them to begin global asset-management businesses.

    An official at Penghua who declined to be named said the company is preparing to launch products under the QDII program, but added that there are no more details available for now.

    The firm had 119.21 billion (US$17.07 billion) worth of assets under management as of end-2007. Italy’s Eurizon Financial Group SpA holds a 49 percent stake in Penghua.

    Lion Fund Management, a fund management company with 75.89 billion yuan assets under management as of end-2007, said in a statement it is also preparing to launch products under the program, but it didn’t give details.

    Initiated in 2006, the QDII program allows domestic banks, fund managers and insurers to invest in securities abroad up to set quotas.

    (SD-Agencies)