HSBC has become the custodian bank and asset services provider for the first ever Renminbi Qualified Foreign Institutional Investor (RQFII) money market exchange-traded fund (ETF). The ETF will be domiciled and listed in the UK.
CCB International Asset Management Limited, the fund’s investment manager, said it selected HSBC for its track record in helping clients achieve first-mover advantage in opportunities presented by the internationalisation of the renminbi.
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 onshore markets.
Since 2014, HSBC has enabled clients to be the first in the UK, France, Korea, Singapore and Germany to gain RQFII licenses.
In addition, HSBC has supported clients in achieving market-first positions in a number of RQFII fund launches, including the first Europe-listed RQFII ETF, the first Hong Kong-Listed RQFII Bond ETF and the first Luxembourg-domiciled RQFII ETF.
Tony Hung, executive director of portfolio management at CCB International Asset Management Limited, said: “HSBC’s teams have supported us from the outset with product design and regulatory liaison through to the launch of this renminbi money market ETF.”
“We have enjoyed a strong relationship with HSBC for a number of years and today’s launch marks an important milestone in our business partnership.”
HSBC is providing an extensive range of securities services to the ETF, including global custody, China sub-custody and clearing, UK depositary, fund administration and transfer agency.
The ETF will operate under the Undertakings for Collective Investments in Transferable Securities structure—enabling the fund to be marketed across the EU.
Cian Burke, global head of securities services at HSBC, said: “This pioneering move will help to develop the renminbi asset management industry in the UK and build investment links with China.”
“HSBC is honoured to be the service provider to CCB International for this innovative ETF, drawing on our ability to connect our leadership in China's securities services market with our UCITS expertise in Europe."
As of February 2015, HSBC was the custodian bank for 41 percent of the total allocated investment quota for RQFII around the world, approved by the State Administration of Foreign Exchange in China.