China mulls expanding RQFII scheme to France
29 November 2013
Category: News, China, France
By Asia Asset Management
China’s Ministry of Finance is considering expanding the RMB Qualified Foreign Institutional Investor (RQFII) pilot scheme to France by expanding the offshore RMB business into Paris.
The Ministry of Finance said on its website that it is working on details regarding a depository, as well as clearing and settlement. It expects France to become the second European country to be awarded RQFII status after the UK.
The Chinese regulator has recently stepped up its campaign to promote the RQFII scheme overseas. For instance, the State Administration of Foreign Exchange (Safe) granted quotas of 80 billion RMB (US$12.6 billion) and 50 billion RMB RQFII to London and Singapore, respectively, earlier this year.
Separately, China’s Ministry of Finance stated that both sides (the Autorité des Marchés Financiers (AMF) and China Banking Regulatory Commission (CBRC)) would study the possibility of signing an agreement to allow Qualified Domestic Institutional Investors (QDII) exposure to the French market. China is hoping to sign the agreement in the near future.
“The agreement is in relation to the overseas wealth management business of Chinese commercial banks, and its signing will be beneficial to both markets,” said a statement on the Ministry of Finance website. “Both sides welcome the promotion of insurance companies and asset management firms already qualified to invest in France.”