HSBC custodian for Swiss Re’s RQFII fund 22 June 2015Zurich Reporter: Stephanie Palmer
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HSBC has become the first bank in China to provide custody services for a Swiss Renminbi Qualified Foreign Institutional Investor (RQFII) fund.
The bank will be the local custodian for Swiss Reinsurance Company Ltd, (Swiss Re) which has been approved as the first Swiss investor in China under the RQFII scheme.
The move comes as an extension of China opening its offshore securities markets to overseas investors – in January China extended its RQFII scheme to Switzerland, with an allocated quota of RMB 50 billion, or $7.6 billion.
As the local custodian, HSBC facilitated Swiss Re’s application to invest.
Sophia Chung, head of securities services for China at HSBC, said: “We are delighted to have been able to work with Swiss Reinsurance Company. This development is testament to the success and the progress of the RQFII scheme and we are very proud to now be connecting RQFIIs across eight markets to our network in China.”
Guido Fürer, chief investment officer of Swiss Re, added: “Gaining access to the Chinese financial markets as they grow in significance has become vital for global long-term investors.”
“The RQFII programme will further complement Swiss Re's liability matching investment capabilities. This is an important step in Swiss Re's business aspirations under our high growth market strategy."
HSBC offers custody, clearing and settlement, and agency services in China, and as of the end of May the bank was custodian for almost 46 percent of the total RQFIIs approved.
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