HSBC Global Asset Management (HSBC GAM) is reportedly planning to set up a passive RQFII business in London, following the closure of its passive unit in Hong Kong in February this year.
HSBC GAM has applied for an RMB-denominated qualified foreign institutional investor (RQFII) quota in London and has consolidated its passive manufacturing there.
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The firm is seeking to launch new passive RQFII products following the approval of the quota, according to Asian Investor.
The closure of HSBC GAM’S RQFII business in Hong Kong has resulted in the delisting of its four ETF’s that are focused China, Greater China, Hong Kong and Taiwan.
Carmen Gonzalez-Calatayud, London-based ETF specialist at the firm, said passive RQFII products in London will likely track an index that does not have heavy exposure to particular sectors.
The new business will actively manage RQFII funds. Last month, the firm has launched its RQFII Chinese Fixed Income Fund in the city.
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By GlobalData"I enquired about China with my private bank clients in Europe. From a discretionary portfolio perspective, they still don’t make any allocation to China.
"It makes sense if you are going to have a stock-picker or someone who is going to invest actively, for that portfolio manager to be based locally," added Gonzalez-Calatayud told Asian Investor.
