Barings obtains RQFII licence
Baring Asset Management has obtained a Renminbi Qualified Foreign Institutional Investor (RQFII) licence from the China Securities Regulatory Commission, giving the manager further access to Renminbi denominated securities.
The RQFII licence facilitates investor access to both equities and bonds, as well as ensuring daily liquidity for open ended funds – the licence gives asset managers quotas, which can be used to allocate to a single asset class if desired, say, just to bonds. The Chinese onshore bond market is estimated at $5trn by Barings.
David Stevenson, head of Business Development at Baring Asset Management, said: “Barings has been a major player in Hong Kong and mainland China for many years and has extensive experience of the market. The RQFII programme is further evidence of China’s integration into mainstream global financial markets, and there are clear benefits for investors looking for onshore opportunities in the world’s second-largest economy. This is a natural evolution for Barings’ business in China and will support the significant on-going developments we have in the region.”