Sub-custody guide: South Korea
In July 2014, China allocated an RMB80bn Renminbi Foreign
Institutional Investor (RQFII) quota to Korea. HSBC is providing asset services
to Shinhan BNP Paribas Asset Management, which has become the first Korean
institutional investor to receive a licence to access China’s onshore capital
markets via the RQFII.
HSBC successfully facilitated Shinhan BNP Paribas Asset
Management’s successful application for up to RMB3bn of RQFII quota, the
largest amount ever approved for a first time applicant in this scheme.
Elsewhere, the Korean government is planning to introduce an
additional 10% surcharge as a value added tax on custody fees, which will be
effective from July 1 2015.
The government has also decided to allow Korea Post, which
has $95bn in assets under management, to invest up to 20% of its deposit funds
in local stocks, up from 10% currently.
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