Deutsche Asset & Wealth Management (DeAWM) has been granted a Renminbi Qualified Foreign Institutional Investor (RQFII) licence by the China Securities Regulatory Commission, allowing the German asset manager to apply for quota in order to invest in China mainland securities.
The award of the licence follows an agreement reached last year between Germany and China to establish a quota of RMB 80 billion (approx. EUR 11.2 billion) that German-based financial institutions can use to invest in China‘s domestic capital markets.
“Deutsche AWM has been at the forefront of providing international investors with access to China’s domestic capital markets, so we’re pleased to be the first asset manager in Germany to be awarded an RQFII licence. With China’s enormous growth potential this is a very important market for both our active and passive investment management clients,” said James Dilworth (pictured), CEO of Deutsche Asset & Wealth Management Investment GmbH.
DeAWM currently has €4.5bn AUM in funds with renminbi exposure, including approximately €2bn in China A shares ETFs. “We have been engaged as an investor in China ever since the market began to open up internationally, which is why Deutsche AWM is one of the world’s leading experts on providing investment solutions for Chinese exposure. Today, we focus on renminbi-denominated or renminbi hedged offshore bond investments. Going forward, and once we have received quota, we want to enable an extended opportunity set, including onshore and offshore bonds. Finally, this is not only about accessing this market – it is about creating added value and potential alpha for our clients,” added Dilworth.