It is licensed to cover a full spectrum of asset management services in China including, public funds, the national social security fund, corporate annuities, discretionary accounts, QDII, QFII
and RQFII are designed for foreign investors to trade securities in China's largely isolated capital market.
As a result, while the PBOC readies plans to loosen controls over the QFII
funds, it is also believed to be readying measures to "aggressively" reinsert capital controls in other areas, the (http://www.
Foreign ownership limit of five per cent per QFII
and 20 per cent for all QFIIs
in a single stock.
arrangements must not be used to sell listed shares, or interests in them, to GCC citizens.
KIA received the initial investment quota of USD 300 million in March 2012 and an additional USD 700 million in January last year after the inauguration of its Beijing Representative Office and obtained a QFII
license late 2011.
Mad despite the expansion of programs like QFII
and BQFII, the development of the Hong Kong bond market, and limited relaxation of capital controls, much of the cross-border movement of RMB still reflects exchange rate arbitration rather than a true market-driven use of the RMB as an international currency.
Fulfilling the QFII
quota builds on the long-term presence and success that The Principal Financial Group has had in the retirement and mutual fund business within the region, an effort that dates back to 1994.
The new QFII
rules apply to 12 Taiwanese banks that are allowed to invest in securities in China, including Bank of Taiwan, Taiwan Cooperative Bank, First Commercial Bank, Hua Nan Bank, Chang Hwa Bank, Cathay United Bank, Chinatrust Commercial Bank, Taipei Fubon Commercial Bank, Mega International Commercial Bank, E.
In addition, QFII
licenses are being given out more quickly than ever.
Earlier this year, China raised the total maximum QFII
quota to $80 billion from a previous ceiling of $30 billion, a target that was exceeded last month.
A lot of investors are underweight China in their portfolios so any talk on QFII
is likely to encourage them to start getting involved again," said Tom Kaan, a director at Louis Capital Markets in Hong Kong, referring to quotas for offshore investors to directly access China's domestic markets.