Chinese regulators have granted HSBC Global Asset Management renminbi qualified institutional investor (RQFII) licence, which will enable the company to invest renminbi into the country’s equity and bond markets.
The RQFII quota system was established in 2011 to complement the better-known qualified foreign institutional investor (QFII) scheme. According to the scheme, investors bring US dollars onshore, which they switch into renminbi to make investments.
Go deeper with GlobalData
Access deeper industry intelligence
Experience unmatched clarity with a single platform that combines unique data, AI, and human expertise.
RQFII licence holders can invest renminbi held offshore into China’s domestic markets and is one tool for encouraging the use of the Chinese currency for international trade.
Previously, the RQFII scheme had been limited to offshore subsidiaries of mainland asset managers and brokerages. At the end of June, only 22 licences had been granted.
But in March 2013, the China Securities Regulatory Commission (CSRC) announced a loosening of restrictions to enable foreign funds based in Hong Kong and offshore branches of Chinese banks to apply for a RQFII quota.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalData
