JPMAM receives RQFII license

15 November 2013   Category: News, Asia, China   By Asia Asset Management

J.P. Morgan Asset Management (JPMAM) has announced that a subsidiary of J.P. Morgan Chase & Co. has received a Renminbi Qualified Foreign Institutional Investor (RQFII) license from the China Securities Regulatory Commission (CSRC). JPMAM is one of the first international asset management companies to receive the license, which will allow them to invest in China’s domestic markets with RMB-denominated funds raised overseas. 
Commenting on the approval of the license, Jed Laskowitz, chief executive officer, Asia Pacific at J.P. Morgan Asset Management, said: “Foreign investors have exhibited a strong desire to invest in China’s capital markets. We believe the RQFII pilot programme reflects efforts by the Chinese government to accelerate both the opening of the country’s domestic capital markets and the RMB internationalisation process. With the further opening of China’s capital markets and the liberalisation of capital accounts, we are confident that new opportunities will continue to emerge for global investors.”
JPMAM will apply to the State Administration of Foreign Exchange (SAFE) for an RQFII investment quota and plans to utilise the quota to extend its range of RMB product offerings to its clients. 
JPMAM was the first asset manager to launch a Securities & Futures Commission (SFC) authorised retail fund in Hong Kong to invest directly in China A-share via its own Qualified Foreign Institutional Investors (QFII) investment quota in 2006. The JPMorgan China Pioneer A-Share Fund has a total QFII quota of US$350 million and is now one of the largest Hong Kong domiciled QFII funds with AUM of US$867 million.