JP Morgan Asset Management (JPMAM) has been granted a Renminbi Qualified Foreign Institutional Investor (RQFII) license by the China Securities Regulatory Commission (CSRC).
The license will allow JPMAM to invest in China’s domestic markets with renminbi-denominated funds raised overseas.
Additionally, JPMAM intends to apply to the State Administration of Foreign Exchange (SAFE) for an RQFII investment quota and plans to use the quota to expand its range of renminbi product offerings to its clients.
Jed Laskowitz, CEO for Asia Pacific at JPMAM, said: "Foreign investors have exhibited a strong desire to invest in China’s capital markets. We believe the RQFII pilot programme reflects efforts by the Chinese government to accelerate both the opening of the country’s domestic capital markets and the RMB internationalisation process.
"With the further opening of China’s capital markets and the liberalisation of capital accounts, we are confident that new opportunities will continue to emerge for global investors," he added.
In 2006, JPMAM has launched a Securities & Futures Commission (SFC) authorised retail fund with its Qualified Foreign Institutional Investors (QFII) investment quota in Hong Kong to invest directly in China A-share.