CSRC grants ten QFII and RQFII licenses in August
12 September 2013
News, Asia, China, Hong Kong
By Asia Asset Management
The China Securities Regulatory Commission (CSRC) announced on September 10 that it granted RMB qualified foreign institutional investor (RQFII) licenses to five financial institutions in August, taking the total number of RQFII participants to 33.
The new RQFII institutions include; Bank of East Asia, SinoPac Asset Management (Asia), BOCOM International Asset Management, China Orient International Asset Management, and Value Partners Hong Kong.
“We believe Hong Kong has a significant role to play in China’s financial liberalisation process, and asset managers can facilitate this change as well as benefit from it,” says Timothy Tse, CEO of Value Partners. “While China further liberalises the financial sector and opens its capital account, increasing cross-border flow will be imperative for RMB internationalisation. This process presents huge potential for the asset management industry in Hong Kong – a major offshore RMB centre and the focal point of capital flows. We are enthusiastic about the opportunities arising from the reform dividends, and will leverage the newly-granted status to enhance our product offerings and develop funds that best meet investor needs.”
Values Partners has become the latest Hong Kong-based financial institutions to be awarded an RQFII license after the CSRC announced an expansion of the RQFII programme in March. The directive allows the participation of Hong Kong subsidiaries of Mainland banks and Mainland insurers, as well as Hong Kong registered financial institutions that have major business in the territory. Hong Kong-based financial entities such as HSBC Global Asset Management and Hang Seng Investment have also accessed the programme.
A spokesperson from Value Partners tells Asia Asset Management that the company is planning to make use of the soon-to-be-granted RQFII quotas to access the equity, fixed income and ETF markets. The structure of the RQFII products is dependent on the amount approved by the State Administration of Foreign Exchange.
Meanwhile, the CSRC has also granted qualified foreign institutional investor (QFII) status to five foreign financial institutions; CTBC Life Insurance, Keywise Capital Management, Fubon Insurance Company, Alta Advisers, and Flowering Tree Investment Management, boosting the total amount of QFII institutions to 237 as of the end of August, 2013.
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