China’s Safe delivers US$1.03 billion in QFII quotas

04 November 2013   Category: News, Asia, China   By Hui Ching-hoo

The State Administration of Foreign Exchange (Safe) announced on October 31 that it has dished out US$1.03 billion in new Qualified Foreign Institutional Investor (QFII) quotas to seven foreign institutions in October, taking total approved QFII quotas to US$48.51 billion as of the end of October.   
Among the new QFII license holders, Newport Asia LLC, Alta Advisers, East Capital AB, and Pacific Alliance Investment Management (HK) were awarded US$100 million quotas each. Flowering Tree Investment Management and Fubon Insurance Company received US$80 million and US$50 million quotas, respectively. 
Elsewhere, existing QFII participant Temasek Fullerton Alpha Investments was granted an additional quota of US$500 million. 
Separately, the Safe slashed HSBC Global Asset Management (Hong Kong)’s quota for a second time, by US$10 million, following a cutback of US$18 million in January after the firm failed to use the quota within its specified time limit.
The Safe also granted a total of 5.3 billion RMB (US$841 million) in RMB-denominated Qualified Foreign Institutional Investor (RQFII) quotas in October. Among them, China Orient International Asset Management and Bank of East Asia each received 1 billion RMB quotas, while Value Partners Hong Kong was awarded 800 million RMB quotas. Nanhua Asset Management (Hong Kong) Corporation and Orient Finance Holdings (Hong Kong) were granted 500 million RMB quotas each. 
In addition, existing RQFII players Bosera Asset Management (International) renewed 1.5 billion RMB quotas in October.