China’s Safe grants $1.3 billion of QFII quotas for May

04 June 2014   Category: News, Asia, China, Global   By Hui Ching-hoo

Mainland China’s State Administration of Foreign Exchange (Safe) dished out US$1.3 billion worth of new QFII quotas to eight foreign institutions in May, taking the total granted to the scheme’s 249 participants to US$55.7 billion.

Safe allocated a quota of $100 million each to newcomers Greystone Managed Investments, Hyundai Securities, NTUC Income Insurance Cooperative Ltd, Matthews International Capital Management, Nordea Investment Management, and HFT Investment Management (HK). Existing players Cascade Investment and Abu Dhabi Investment Authority received an additional $200 million and $500 million, respectively.

Separately, Safe handed out 1 billion RMB (US$160 million) in RQFII quotas each to new players Schroder Investment Management (Hong Kong) and Macquarie Funds Management Hong Kong. Cephei Capital Management (Hong Kong) and BlackRock Asset Management North Asia were awarded quotas of 1.3 billion RMB and 2 billion RMB, respectively.   

Marc Desmidt, head of alpha strategies and strategic product management for Asia-Pacific, BlackRock, said: “The RQFII licence complements our two QFII licences and provides direct investment opportunities into the ever-more important capital markets in China.”

Meanwhile, existing RQFII entities Harvest Global Investments, Guotai Junan Financial Holdings, Guoyuan Securities (Hong Kong), and Taikang Asset Management (Hong Kong) each received a quota of 1 billion RMB. E Fund Management (Hong Kong), LFM Global Investment (Hong Kong), and Essence International Financial Holdings were each awarded a quota of 500 million RMB. 

Hua An Asset Management (Hong Kong) and China Everbright Financial Securities Holdings each received 800 million RMB quotas, while HFT Investment Management (Hong Kong) and GF Holdings (Hong Kong) were given allocations of 1.5 billion RMB each. Safe also gave China Everbright Asset Management, China Life Franklin Asset Management, China Investment Securities (HK), and CSOP Asset Management quotas of 1.2 billion RMB, 3 billion RMB, 300 million RMB, and 2 billion RMB, respectively.