HSBC has become the first custodian bank in China to service a Renminbi Qualified Foreign Institutional Investor (RQFII) based in Germany.
HSBC is providing local custodian services to Deutsche Asset & Wealth Management Investment, which has secured regulatory approval to become the first German investor in China under the RQFII scheme.
The programme is designed to open up the nation’s onshore securities markets to overseas investors using Renminbi (RMB).
Deutsche Asset & Wealth Management Investment GmbH is the first German entity to be granted an RQFII licence under the German RQFII scheme by the China Securities Regulatory Commission (CSRC).
As Deutsche Asset & Wealth Management’s onshore custodian bank in China, HSBC facilitated its application for the RQFII Germany licence.
In July 2014, China announced it had extended the RQFII pilot scheme to Germany with a quota of $13 billion being allocated.
Cian Burke, global head of securities services for HSBC, commented: “We are delighted to have been able to work with Deutsche Asset & Wealth Management. This mandate demonstrates our ability to work across borders and help connect investors in Germany.”
He added: “This milestone also underlines Germany’s interest in developing its RMB business. Since the inception of the RQFII scheme in 2011, HSBC has been working closely with financial institutions around the world to help them access the Chinese market.”
Andy Ng, head of securities services for China at HSBC, commented: “We expect liberalisation of the Qualified Foreign Institutional Investor (QFII) and RQFII schemes will speed up as RMB internationalisation gathers ever greater momentum.”
