Caceis has been appointed by Bank of China (Luxembourg) SA to provide custody, depositary, fund administration, fund distribution and other related asset services to its Luxembourg RMB RQFII Ucits fund.
This agreement has been reached in the aftermath of Bank of China (Luxembourg) SA’s recent approval from the Chinese financial regulator that allowed it to become the first financial institution to use part of the RMB 50bn (€7.3bn) RQFII investment quota granted to Luxembourg in April 2015.
The renminbi qualified foreign institutional investors (RQFII) programme gives foreign investors access to the Chinese financial markets.
Bank of China (Luxembourg) SA’s Luxembourg-domiciled RMB RQFII Ucits fund is able to access the Chinese interbank bond market (CIBM), which at RMB 35.3trn (€5.2trn) ranks as the third largest bond market worldwide.
Lihong Zhou, CEO of Bank of China (Luxembourg), said : “We are keen to bring the benefits of the RQFII initiative to our investors. In selecting Caceis, Bank of China (Luxembourg) SA is proud to have created this winning partnership between two frontrunning entities in their respective fields.
“We believe this venture will enable us to significantly advance our goal of building up our own asset management platform whilst bringing great value to both our entities.
Joseph Saliba, Deputy CEO of Caceis, stated : “We are delighted to be in a position to support Bank of China (Luxembourg) SA for the launch of its first renminbi-related Luxembourg investment product.
“As a leading European asset servicing provider, Caceis will leverage its extensive market experience to ensure that Bank of China (Luxembourg) SA is able to invest its Renminbi quota securely and effectively, distribute its products efficiently and provide professional reporting services to its investors.”