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Bringing you news, views and analysis since 2013

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Barings awarded Renminbi QFII status in China

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Baring Asset Management (Barings), the international investment firm, has been awarded a Renminbi Qualified Foreign Institutional Investor (RQFII) licence by the China Securities Regulatory Commission.  

RQFII status means Barings has another direct access channel to Renminbi-denominated securities, in addition to the Qualified Foreign Institutional Investor (QFII) license and provides much greater flexibility in terms of asset allocation compared to the QFII programme.

 
The RQFII licence will support the firm’s existing offshore product set. Barings launched one of the first mutual funds investing in the region in 1982, managed the first dedicated China fund in 1985, and was an early investor in China’s domestic A-share market via the QFII channel. RQFII status will provide further business development opportunities for the firm.
 
Advantages of the RQFII programme include fully flexible allocations to both equities and bonds, and daily liquidity for open-ended funds.  In particular, the greater access to fixed income investments – the licence allows for the full RQFII quota to be allocated to just bonds for example – will be very positive for foreign institutional and retail investors attracted to China’s USD5 trillion (RMB30 trillion) onshore bond market, believes Barings.
 
David Stevenson, Head of Business Development at Baring Asset Management, says: “Barings has been a major player in Hong Kong and mainland China for many years and has extensive experience of the market.  The RQFII programme is further evidence of China’s integration into mainstream global financial markets, and there are clear benefits for investors looking for onshore opportunities in the world’s second-largest economy.  This is a natural evolution for Barings’ business in China and will support the significant on-going developments we have in the region.”

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