First RQFII approved in the Americas 06 August 2015Toronto Reporter: Stephanie Palmer
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HSBC has become the first custodian bank in China to service a Canadian Renminbi Qualified Foreign Institutional Investor (RQFII).
Canadian CI Investments has gained regulatory approval to become the first investor in the Americas to access China under the RQFII programme.
The programme is designed to open up China’s securities markets to overseas investors. China extended it to Canada in November last year, with a quota of RMB 50 billion ($8.6 billion).
HSBC already works with Canadian for the Qualified Foreign Institutional Investor programme,
Which allows investment through foreign currencies converted to renminbi. As of 31 July, HSBC was custodian bank for $26.6 billion of the QFII investment quote globally, equivalent to 34.7 percent.
The bank is also custodian bank for RMB 184 billion ($29.6 billion) of the investment quota for RQFIIs, equivalent to 46 percent of the total amount approved.
Sophia Chung, head of securities services in China for HSBC, said: “Canada is a key RMB hub and we are delighted to now be working with CI Investments as the first RMB qualified institutional investor in this region. This marks a significant step for RMB internationalisation in the Americas and the progressive role that HSBC’s plays in this.”
Eric Bushell, senior vice president of CI Investments, said: “In China, we see long-term economic growth and attractive investment opportunities for our investors. The experience, capabilities and support of the HSBC team have been key to connecting us with the evolving opportunities that China presents.”
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