Safe approves US$1.5 billion worth of QFII quotas in January

29 January 2014   Category: News, Asia, China   By Hui Ching-hoo

China’s State Administration of Foreign Exchange (Safe) distributed a total of US$1.5 billion worth of Qualified Foreign Institutional Investor (QFII) quota in January to ten QFII players. This took the total in QFII quotas dished out by the authority to $51.4 billion as of the end of January.

Safe granted $100 million each to Investec Asset Management, SeaTown Holdings International, Franklin Templeton SinoAM SIM Inc, PIMCO Asia, China Life Franklin Asset Management, and UBS Hana Asset Management. ST Asset Management was awarded a quota of $50 million.

Meanwhile, Safe approved an additional $500 million quota to existing QFII participant Kuwait Investment Authority. The Bank of Korea and Bank of Julius Bear & Co renewed $300 million and $50 million quotas, respectively. Additionally, Safe rescinded $83 million worth of quota from Invesco Asset Management, as the asset manager hadn’t made use of its quota within a stipulated period of time.   

As for RMB Qualified Foreign Institutional Investor (RQFII) quotas, Safe awarded a total of 4.5 billion RMB (US$714 million) to five RQFII financial entities in January. Of these, JF Asset Management, Chong Hing Bank, and CCB International Asset Management each received 1 billion RMB, while China Everbright Asset Management and Shanghai International Asset Management (HK) were granted quotas of 700 million RMB and 800 million RMB, respectively.

Existing RQFII players Guangdong Securities and Guotai Junan International Holdings renewed 1 billion RMB and 8 billion RMB quotas, respectively. CSOP Asset Management, which is the largest RQFII product provider, received an additional quota of 4 billion RMB.

As of January 31, the regulator had granted a total of 167.8 billion in RQFII quotas to 57 financial institutions.