CICC and Hai Tong set to be first for RQFII
China International Capital Corporation (CICC) and Hai Tong Asset Management (HK) are set to be among the first asset managers to receive a RQFII quota, Professional Adviser understands.
The programme – RMB Qualified Foreign Institutional Investors (RQFII) – allows investors to use the Chinese currency to purchase yuan-denominated stocks and bonds in the mainland market via an initial combined quota of 20bn yuan.
CICC is considering launching a yuan-denominated fixed income fund for retail investors in Hong Kong once the firm gets an approved quota, sources say. The firm is also likely to partner with three banks in distributing its product once the fund comes into force.
Beijing-based CICC refused to comment while Hai Tong Asset Management (HK) confirmed its intention to apply for RQFII. The firm said it aims to develop its yuan business in Hong Kong following its launch of the city’s first yuan-denominated retail fund last year.
Chinese asset managers in Hong Kong are eyeing RQFII licenses from China Securities Regulatory Commission (CSRC), following the announcement of the scheme by China’s vice premier Li KeQiang last week. However, precise of details for the application process are yet to be revealed.
Steve Chiu, managing director at Bosera Asset Management (International), believes more official details for RQFII will be published soon, saying he is confident it will be one of the firms receiving a quota with the intention of developing yuan retail products in Hong Kong.
A version of this article first appeared on Professional Adviser Hong Kong.