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Ashmore gets RQFII status
07 January 2014
First asset manager outside of Hong Kong to win approval
Ashmore has been granted RMB Qualified Foreign Institutional Investors (RQFII) status, making it the first investment manager outside of Hong Kong to receive the approval.
The status, approved by the China Securities Regulatory Commission (CSRC), allows international investors access to the Chinese onshore equity and fixed income securities markets.
“China has been one of the most compelling, yet difficult markets for investors to access. The scale of the investment opportunity in China is enormous.
China’s over US$4.0 trillion Interbank Bond market is poised for considerable growth and development as China continues to liberalise, and the over US$3.5 trillion A-shares equity market already has a market capitalisation above that of the London Stock Exchange.
Both these markets have traditionally been difficult for international investors to access until now,” said Jan Dehn, Ashmore's head of research.
Many of Ashmore’s clients are looking for ways to make dedicated investments in China as part of their well-diversified global portfolios, according to global head of distribution Christoph Hofmann.
“The Chinese investment market is one of the most dynamic in the world, and securing this licence from the CSRC is a reflection of Ashmore’s long-standing commitment and deep ties to China. We are very proud that Ashmore has been chosen as the first foreign asset manager to be granted access to one of the most compelling investment opportunities of our time.”
The RQFII scheme allows for improved ease of repatriation of funds compared to the existing QFII scheme, and provides more flexible investment guidelines for investors looking to invest in China, which Ashmore believes will have numerous benefits to its clients.