Second batch of RQFII quotas to be allocated to HK-listed A-share ETFs
10 May 2012
News, Asia, China, Hong Kong
By Hui Ching-hoo
The China Securities Regulatory Commission’s (CSRC’s) fund supervision department director Wang Lin has indicated that the second batch of RQFII quotas, 50 billion yuan (US$7.9 billion) in total, will be fully invested in Hong Kong-listed A-share ETFs, according to the Southern Metropolis Daily.
The ETFs will track the performance of A-share indexes such as CSI 300, CSI 100, FTSE China A50, and MSCI China Index. Instead of granting specific quotas to each institution, the new RQFII allocations will be distributed when the RQFII ETF products are approved by Securities and Futures Commission (SFC), Mr. Wang added.
Four Mainland fund houses, namely ChinaAMC, Harvest, E Fund and China Southern, have reportedly submitted their applications to the SFC.
Separately, Mr. Wang stated that 37 existing QFII license holders, including the Hong Kong Monetary Authority (HKMA) and Fidelity, have applied for additional QFII quotas with a combined total of US$12.5 billion. Thirty-three foreign institutions have applied for initial QFII quotas amounting to $10.25 billion altogether.
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