Safe slowed QFII approval to $850 million in April

05 May 2014   Category: News, Asia, China, Global, Hong Kong   By Hui Ching-hoo

Mainland China’s State Administration of Foreign Exchange (Safe) tapered the pace of QFII quota approval to US$850 million in April from $1.45 billion in March.

This brought the total QFII quotas it granted to 242 foreign institutions to $54.4 billion as of April 30. 

In April, the government body awarded a quota of $50 million to new QFII player Washington University.

Existing QFII participants CITIC Securities International Investment Management (HK), British Columbia Investment Management Corporation, and Nan Shan Life Insurance received additional quotas of $200 million each, while Board of Regents of the University of Texas System and Capital Securities Investment Trust Corporation renewed quotas of $50 million each. Another existing player, Prescient Investment Management received a quota of $100 million. 

Meanwhile, Safe took back a quota of $10 million from HSBC Global Asset Management (HK). This is the third time the Hong Kong-based asset manager’s QFII quota has been slashed by Safe, due to it not being used within a certain time limit.

Separately, Safe granted a total of 13.1 billion RMB ($2.09 billion) worth of RQFII quotas to 12 financial entities in April.

Of this, Mirae Asset Global Investment, Value Partners Hong Kong, and Industrial Securities (HK) were awarded quotas of 800 million RMB, 500 million RMB, and 800 million RMB, respectively.

Takiang Asset Management (HK), GF Holdings (HK), Guotai Junan Financial Holdings, UBS SDIC Asset Management (HK), and Da Cheng International Asset Management each received additional quotas of 100 million RMB each. ABC International Asset Management, CCB International Asset Management, Shenyin Wanguo (HK), and CSOP Asset Management renewed 150 million RMB quotas a piece.

Up to the end of April, Safe has granted an aggregate of 215.6 billion RMB RQFII quotas to 62 financial entities.