China allows local banks to invest in Singapore

China will let its commercial banks invest in Singapore stocks and funds, signaling that the government is widening the scope of its overseas investment program.
The nation reached an agreement with the Singapore authorities for investments by Chinese banks under the so-called qualified domestic institutional investor, or QDII program, the China Banking Regulatory Commission said in a statement posted on its Web site Wednesday.

China will "soon" sign similar agreements with the U.S., German and Japanese governments, the statement said without specifying a timeline.

The Chinese government is expanding investment destinations for its QDII program after four funds offered by fund houses posted combined losses of 11.8 billion yuan (US$1.6 billion) in the fourth quarter of 2007. China's industry watchdog announced on Dec. 17 it will let the nation's banks invest in UK equities, the first expansion of banks' QDII funds outside Hong Kong.