Number of QFII-awarded subsidiaries of Chinese firms looks set to rise
06 March 2013
News, China, Hong Kong
By Hui Ching-hoo
An increasing number of Mainland asset managers’ subsidiaries in Hong Kong look set to receive QFII licenses after E Fund Management (HK), China Asset Management (Hong Kong) and CSOP Asset Management were awarded QFII status between December 2012 and January 2013.
China Securities Journal quoted market sources as saying that the China Securities Regulatory Commission (CSRC) will further extend coverage of the QFII program to Mainland asset managers’ overseas offshoots. Given that 15 Chinese fund managers have already established subsidiaries in Hong Kong, the second round of QFII licenses to be awarded to affiliates is expected to be much more than the first.
Currently, the RQFII products managed by the subsidiaries are only linked to RMB onshore bonds and A-share ETFs. As such, the sources believed the QFII quotas that the subsidiaries received will be used to access Mainland equities in order to reinvigorate the A-share market.
Other than fund managers’ affiliates, Chinese securities brokerages’ offshoots including CITC Securities International Investment (HK), and Hai Tong Asset Management (HK) were also granted QFII licenses in late 2012.
Asia Asset Management understands that Guotai Junan Assets (Asia), the subsidiary of leading securities house Guotai Junan Securities, is the latest QFII recipient, although this has yet to be announced through official channels.
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