- In addition to funds management companies, qualified securities companies, insurance asset management companies and asset management firms are now allowed to engage in the publicly-placed funds management business.
- Privately-placed securities investment funds are required to make a post-fundraising filling with the Asset Management Association of China.
QFII Program
China Qualified Foreign Institutional Investor (QFII) program allows QFIIs to invest in China domestic markets. In the past year, China State Administration of Foreign Exchange (SAFE) issued revised regulations, subsequently allowing QFIIs to provide more attractive offers to their clients and to give more options to structure QFIIs offshore. The changes were to achieve:
- Increase QFII repatriation frequency
- Provide an opportunity for sovereign wealth funds, central banks and monetary authorities to increase their QFII quotas beyond the current limit of US$1billion
- Streamline the management of QFII accounts.
RQFII Pilot Program
China Renminbi Qualified Institutional Investor (RQFII) program allows RMB raised in Hong Kong by specific financial institutions to be invested in China domestic securities market. To further promote RMB internationalization, new RQFII regulations were imposed to expand the program by:
- Extending the scope of RQFII eligible institutions, which now includes:
- Hong Kong subsidiaries of Chinese commercial banks and insurance companies, in addition to those of Chinese securities and fund management firms.
- Other financial institutions that are registered and mainly operate in Hong Kong.
- Loosening restrictions on investments by RQF11s.
