KUWAIT, May 11 (Reuters) - A senior Kuwaiti official said on Monday China has pledged to allow the Gulf state's sovereign wealth fund to trade on the Shanghai Stock Exchange in yuan currency, the official Kuwait News Agency reported.
Chinese Prime Minister Wen Jiabao "also promised ... to grant the Kuwait Investment Authority (KIA) the privilege of local investor," the agency said citing remarks by KIA head Bader al-Saad, which manages the Gulf state's foreign portfolio.
Wen's pledge came during a meeting with Kuwait's Emir Sheikh Sabah al-Ahmad al-Sabah in Beijing during a state visit, it said.
"This would give us a strong impetus to enhance and diversify ... our investments in one of the most important global economies after were have been able to invest in the Hong Kong bourse in line with Chinese law," Saad said.
The government of Shanghai said earlier on Monday that it would consider allowing foreign investors to participate in its futures markets and would take other steps to liberalise and diversify its financial markets as part of a plan to become a global financial centre by 2020.
The city government said it would study a qualified foreign institutional investor (QFII) system for its futures markets and would support the launch of additional products on the Shanghai Futures Exchange.
It will also allow qualified overseas firms to list on the Shanghai Stock Exchange, China's largest bourse, at an appropriate time, while supporting the issuance of yuan bonds by foreign banks incorporated in China, it added. (Reporting by Rania el Gamal; writing by Inal Ersan and Andre Grenon)