HSBC has facilitated the application for the largest ever renminbi qualified foreign institutional investor (RQFII) quota allocation, on behalf of South Korean firm Shinhan BNP Paribas Asset Management.
The application was for 3 billion renminbi (RMB), the largest amount ever approved for a first-time applicant to China’s State Administration of Foreign Exchange scheme.
HSBC has committed to helping clients to benefit from opportunities created as China opens up to domestic capital markets. The bank will act as trustee, global custodian and RQFII custodian for the funds.
Martin Tricaud, president and CEO of HSBC in Korea, said: "We are very pleased to have successfully facilitated our client’s application for the largest RQFII quota ceiling ever approved by China’s regulators. We will continue to support the Korean government’s initiative of promoting RMB internationalisation in Korea and to ensure that our clients here benefit from the globalisation of China's currency and opening-up of its domestic markets.”
This is the latest development in HSBC’s history of providing services to clients investing in China. In October, it bank helped Shiunhan BNP Paribas Asset Management to become the first Korean institutional investor licenced to access China’s onshore capital markets via the RQFII scheme.
In early November, HSBC was selected by Bank of Korea as one of the 12 market-maker banks for direct trading between the South Korean won and RMB.
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