Bank of East Asia obtains RMB Qualified Foreign Institutional Investor approval

It can now invest in China's fixed income market.

In a release, the Bank of East Asia today announces that it has been approved as a Renminbi  Qualified Foreign Institutional Investor (“RQFII”) by the China Securities Regulatory Commission.

With this approval, BEA is allowed to invest in China’s fixed income and A-share markets. BEA will use the RQFII quota for its own investment to enhance return on its RMB funds.

Since its launch in late 2011, the RQFII pilot scheme has drawn wide attention in the investment market. Under the expanded RQFII mechanism, which was announced in March 2013, registered financial institutions whose major operations are in Hong Kong are eligible to apply for RQFII status.

RQFIIs are able to channel RMB funds and deposits raised in Hong Kong back to the Mainland through their investments in China’s capital and equities markets.

Dr. David K.P. Li, Chairman & Chief Executive of BEA, says, “My colleagues and I are optimistic about China’s economic growth prospects and the investment opportunities in the Mainland’s markets. We at BEA will capitalise on our RQFII status to strengthen our investment capabilities and optimise the use of our RMB funds.”

Having obtained RQFII status from the CSRC, BEA will proceed to apply for an RQFII investment quota from the State Administration of Foreign Exchange. The Bank plans to utilise the quota mainly for investment in China’s domestic bond and equities markets.