CHINESE cash could soon be flooding through the International Financial Services Centre after a landmark financial deal was unveiled yesterday.
Watchdogs in the two countries agreed to allow Chinese investors to pump money into Irish domiciled funds in what is being hailed as a significant boost for the Republic’s battered financial sector.
The move allows Irish-managed and administered funds to tap into one of the world’s largest pools of private capital — and an economy fairing better than most in the global credit crisis.
The announcement came as Ireland’s trade mission to China cranked-up a gear with Taoiseach Brian Cowen meeting the country’s Premier Wen Jiabao.
Mr Cowen announced Irish companies had signed contracts with Chinese organisations that are expected to generate sales of around €40m in the next 12-18 months.
That follows earlier deals securing €25m worth of contracts and agreements signed in Shanghai during the first leg of the mission, bringing new export sales to €65m.
The IFSC is set to benefit greatly from an influx of Chinese money after the Irish financial regulator, IFSRA, signed a memorandum of understanding with its Chinese counterparts, the China Securities Regulatory Commission and China Banking Regulatory Commission.
Chinese investors are now able to access internationally distributed investment funds, domiciled and serviced in Ireland, through the Qualified Domestic Institutional Investor regime.
Irish Funds Industry Association chief executive Gary Palmer said: “In a globally competitive marketplace this highlights the Government’s ongoing commitment to developing the Irish financial services industry. This provides an opportunity for the manufacturers of Irish investment funds.”
The Irish funds industry is the single largest employer within Ireland’s international financial services sector.
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