China Everbright Asset Management, a subsidiary of China Everbright, has received a Renminbi Qualified Foreign Institutional Investor (RQFII) license from the China Securities Regulatory Commission (CSRC) on 30 October 2013.
To get the licence, applicants have to meet standards set by the CSRC. The regulatory body assesses asset scale, previous records and past compliance with regulatory ordinances and rules.
The approval will help Everbright’s cross-border business with the allocation of QFII and QFLP quotas and the launch of a number of QDII products, according to The Asset.com.
The license will enable the firm to expand its overseas institutional investor account base and strengthen its cross-border asset management business by helping investors grab opportunities coming from China’s capital inflows and outflows.
RQFIIs, which are considered as a major channel for offshore renminbi to flow back to China will enables overseas investors to share the returns of Chinese fund managers and will help to grow the internationalization of the Chinese currency.