RIYADH: Saudi Arabia’s Public Investment Fund (PIF) may be poised to start making major investments in Chinese companies, after so far mostly limiting its overseas holdings to the US and Europe, Bloomberg reported.

The PIF has applied for a Qualified Foreign Institutional Investor license in China, to be able to directly trade renminbi-denominated stocks, rather than having to go through third parties, according to information published on the website of the country’s top securities regulator.

This move makes sense for the kingdom as it looks to develop economic ties through investment by its sovereign fund, Bloomberg said. China is the kingdom’s biggest trading partner and a top customer for Saudi Aramco.

The $450 billion sovereign fund, which hasn’t disclosed any investments in China, has ambitions to control $2 trillion of assets and become a global investment powerhouse.

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