Goldman Sachs Group Inc's asset management arm, which has received regulatory approval to enter the Chinese mainland's local-currency stock markets, now owns two investment licenses ahead of its rivals.

　　Goldman Sachs Asset Management International, an offshore investment vehicle of the No. 2 securities firm in the United States, is now allowed to trade yuan-denominated stocks and bonds, said a statement on the Website of the China Securities Regulatory Commission.

　　"The move showed China is steadily pressing ahead with a program to allow more overseas institutional participation in the country's capital market," the statement said. "Applications by other institutions are being reviewed."

　　The statement didn't reveal how much quota would be given to the unit. Officials at Goldman Sachs were not available for comment yesterday.

　　Currently, under the Qualified Foreign Institutional Investor program, financial regulators have to grant the right to an overseas company to invest first.

　　Then, the State Administration of Foreign Exchange will assign an investment quota.

　　Goldman Sachs Group was among the first batch of overseas financial institutions granted access to Chinese mainland's bourses in 2003.

　　The group, through its subsidiary Goldman Sachs & Co, received its first investment quota of US$50 million, which was raised to US$150 million in April.

　　Goldman Sachs may at least double the amount it can invest in yuan-denominated securities on China's mainland, said Fred Hu, managing director at Goldman Sachs Asia, on August 12. Hu said a new quota has been approved by the SAFE, without elaborating.

　　In July, China's central government raised the quotas for overseas investors to US$10 billion from US$4 billion set two years earlier, a step which aims to spark liquidity and bring in international expertise to the nation's ailing stock markets.

　　In September, Hang Seng Bank Ltd, Hong Kong's third-largest lender, became the first investor to benefit from the quota increase after the bank received approval to double its investments in yuan-denominated shares and bonds to US$100 million.