Principal Global Investors, the Iowa-based asset manager, has been granted a qualified foreign institutional investor designation in China allowing it to invest in local A-share markets. 

The license from the China Securities Regulatory Commission will be carried out through Principal Global's regional headquarters in Singapore, regional office in Hong Kong, headquarters in Des Moines and coordinated through a representative branch in Beijing. The investment team responsible for the capability is located in Hong Kong, Singapore and the US.

The QFII license represents the next step in the firm's ongoing involvement in China, which it began in 1994. In 2005, Principal Global Investors established a joint venture with China Construction Bank to create China Construction Bank-Principal Asset Management.

As of 31 December 2011, the company has $335 billion in assets under management.