China’s Safe announces QFII/QDII quotas granted in January
06 February 2013
News, China, Global
By Hui Ching-hoo
The State Administration of Foreign Exchange (Safe) granted US$1.36 billion in fresh QFII quotas to eight new foreign institutions in January, according to its website.
CDH Investment Advisory Singapore and Genesis Asset Managers each received a $200 million quota. JP Morgan Securities Investment Trust, EFG Bank AG, Public Mutual Berhad, and Uni-President Assets Management Corporation were awarded QFII quotas of $150 million, $100 million, 1$60 million, and $50 million, respectively. Hillhouse Capital Management and APS Asset Management each obtained $300 million quotas.
Safe also granted an additional $700 million quota to the Government of Kuwait Investment Authority on top of its existing $300 million quota, and handed out another $500 million quota to Abu Dhabi Investment Authority, boosting its total QFII quota to $1 billion.
Meanwhile, an HSBC Global Asset Management (HK) spokesperson has told Asia Asset Management that it has returned $18 million of its originally granted $450 million quota.
Safe has granted a total of around $40 billion QFII quotas to 177 foreign institutions up to the end of January.
Domestically, Safe handed out a $450 million QDII quota to New China Trust in January, and granted a 350 million RMB ($55.5 million) and a 650 million RMB RQFII quota to Harvest Global Investments and Huatai Financial Holdings (Hong Kong), respectively. China Asset Management (Hong Kong) and E Fund Management (HK) each received 1 billion RMB quotas.
The granting of quotas came after an announcement from China Securities Regulatory Commission Chairman Guo Shuqing that the regulator intended to expand the scale of QFII and RQFII schemes tenfold over the long run in order to boost the liquidity of the A-share market.
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