CSRC extends RQFII to HK banks and insurers
March 15, 2013 | BY
clpstaffChina's top regulator is allowing Hong Kong and foreign financial institutions to tap into the country's capital markets, but it is unclear what threshold the foreign institutions will have to meet to be classified as having a principal place of business in Hong Kong
The China Securities Regulatory Commission (CSRC) released details of the Renminbi Qualified Foreign Institutional Investor (RQFII) scheme in December 2011. At the time, the scheme allowed Hong Kong subsidiaries of fund management and securities companies in the mainland to apply for quotas to use renminbi raised in Hong Kong to invest in the securities market.
This has all changed as the investment scope has been enlarged under the under the Measures for Pilot Projects for Securities Investment in China by Renminbi Qualified Foreign Institutional Investors (人民币合格境外机构投资者境内证券投资试点办法) and the Provisions for the Implementation of the «Measures for Pilot Projects for Securities Investment in China by Renminbi Qualified Foreign Institutional Investors» (关于实施《人民币合格境外机构投资者境内证券投资试点办法》的规定) released on March 1 and effective the same day.
“The latest RQFII measures are a continuation of the QFII rules that the CSRC has relaxed over the past year,” said Hubert Tse, a partner at Boss & Young in Shanghai. “The CSRC is looking to continue to open-up domestic capital markets to foreign long-term institutional investors, as it wants to bring more long-term capital into the market,” he added.
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