China Allows Yale to Invest in Domestic Markets
NEW HAVEN, Conn.
The Chinese government has authorized Yale University to trade domestic stocks and bonds, making it the first foreign university granted access to the country’s tightly restricted securities market.
The approval, announced this week in the state-run Shanghai Daily and confirmed Wednesday by the university, allows Yale’s endowment investors to tap one of the world’s fastest growing economies.
It also underscores the increasingly tight-knit relationship between China and the prestigious American university, a relationship marked by Chinese President Hu Jintao’s scheduled visit to the school today (Friday).
China allows foreign investors to buy a limited number of stocks and bonds, called B-shares, which are quoted in American and Hong Kong dollars. The much larger domestic stock exchange, which trades stocks known as A-shares, is restricted to Chinese investors and a select group of approved foreign institutions.
Yale’s $15 billion endowment is one of the world’s largest and has more than tripled in value in the past decade.
