China has granted approval for Qatar’s sovereign wealth fund, the Qatar Investment Authority (QIA), to acquire a 10% stake in China Asset Management Co (ChinaAMC), the country’s second-largest mutual fund company. This approval marks the first significant investment in the sector from a major Middle Eastern investor amid escalating tensions with Western nations.

The approval was confirmed through an official filing by the China Securities Regulatory Commission. However, the exact price for the stake was not disclosed. Previous filings from ChinaAMC’s largest shareholder indicated that the 10% ownership would not be valued at less than $490 million.

QIA is set to become the third-largest shareholder in ChinaAMC, which manages over 1.8 trillion yuan (approximately $249.98 billion) in assets. The company offers various mutual funds and exchange-traded funds to both retail and institutional investors. This deal comes at a time of increasing political, economic, and financial engagement between China and Gulf countries, highlighting the growing ties in these areas.