China’s Safe dishes out US$681 million in QFII quotas in May
05 June 2013
News, Asia, China, Global
By Hui Ching-hoo
The State Administration of Foreign Exchange (Safe) announced on May 30 that it granted a net total of US$681 million in QFII quotas in May.
Among the additional QFII institutions, the Safe handed out a $70 million QFII quota to Dongbu Asset Management and a US$50 million quota to Henderson Global Investors. In addition, Eurizon Capital SA and AZ Fund Management SA each received a QFII quota of $100 million.
Existing QFII participants Credit Suisse (Hong Kong), JF Asset Management, and Mirae Asset Global Investments were awarded additional quotas of $100 million, $150 million, and $100 million, respectively. In addition, Taiwan’s Yuanta SITC received a quota of US$100 million.
Meanwhile, the Safe slashed an aggregate US$89 million off the QFII quotas for Invesco Asset Management, Sumitomo Mitsui Asset Management, and Ashmore EMM.
Hong Yan, associate director of China Academy of Financial Research at Shanghai Jiao Tong University, explains that there is a time limit for using the QFII quota and also the quota has to be used for specific purposes: “If these conditions are not met, then quotas to some QFII institutions may be reduced or taken back entirely.”
Up to the end of May, the Safe had granted a total of $42.5 billion in QFII quotas to 202 overseas institutions.
Separately, the Safe granted a total of 15.5 billion RMB (US$2.4 billion) in RQFII quotas to 14 Mainland institutions in May; including Harvest, China AMC, Bosera, HFT, HuaAn, E Fund, GF Fund Management, Essence International, Everbright, Huatai, Haitong International, GF Holdings, Guoyuan Securities, and CCB International Asset Management.
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