Hang Seng Bank has received approval to invest US$50 million in domestic stocks under the qualified foreign institutional investor (QFII) programme.
The bank has chosen China Construction Bank (CCB) to hold the funds in the mainland.
Hang Seng intended to seek approval to increase the investment limit once it had experience in the A-share market, the company said.
'Hopefully, as our business expands, we will be able to expand our QFII quota,' vice-chairman and chief executive Vincent Cheng Hoi-chuen said, adding the bank would examine equity holdings in the mainland market in addition to investments in fixed-income instruments.
The QFII programme allows approved foreign investors to buy and sell yuan-denominated A shares on mainland exchanges.
Hang Seng Bank is among 15 QFIIs approved in China. It was licensed last month.
