China’s Safe grants $1.35 billion in QFII quotas for August

01 September 2014   Category: News, Asia, China, Global   By Hui Ching-hoo

China’s State Administration of Foreign Exchange (Safe) handed out US$1.35 billion worth of QFII quotas to eight overseas fund managers during August, boosting the total volume of allocations awarded under the scheme to 254 financial entities and $59.6 billion as of the end of the month.

In August, Safe allotted $100 million in QFII quotas each to new participants GF International Investment Management and Paradigm Asset Management.

Existing players Guotai Junan Assets (Asia), CSOP Asset Management, and Uni-President Assets Management Corporation were also each awarded $100 million. OrbiMed Advisors LLC, BlackRock Asset Management North Asia, and Merrill Lynch International were granted quotas of $50 million, $500 million, and $300 million, respectively.   

Marc Desmidt, head of alpha strategies and strategic product management for Asia Pacific at BlackRock, said he was delighted to receive additional QFII quota and looked forward to furthering the firm’s China access business in the region.

“The award complements BlackRock’s existing RQFII and QFII licences, as well as China investments, and is recognition by Safe of our commitment to China,” he added.

Meanwhile, Safe has taken back quotas of $44 million and $30 million from Martin Currie Investment Management and Invesco Asset Management, respectively, as they were not drawn down within a certain period of time. 

Separately, Safe has allocated RQFII quotas totalling 21 billion RMB (US$3.36 billion) to 18 financial institutions in August. Nine of them were given allocations for the first time, including BOCOM Schroder Asset Management (Hong Kong); State Street Global Advisors Asia; Xinhua Asset Management (Hong Kong); Qilu International Holdings; Phillip Capital Management (HK); BlackRock Advisors (UK); HSBC Global Asset Management (UK); Pichon Asset Management Investment; and New Ideas Investment.

Up to the end of August, the Safe had doled out a total of 278.6 billion RMB in RQFII quotas to 81 financial entities.