Will the recent breakthrough in QFII regulation bring the scheme back to the central stage as a preferred access channel to China’s capital market? Melody Yang of Simmons & Simmons and Eugenie Shen of ASIFMA share their insight.
24 June 2020
On 7th May 2020, Chinese Central Bank (PBOC) and State Administration of Foreign Exchange (SAFE) announced a new set of rules for QFII/RQFII account management. It lifts the quota limitation and substantially simplifies the process of investment proceeds repatriation. The top financial official also confirmed at the recent Shanghai Lujiazui Forum that the long-awaited new breakthroughs in QFII regulation by China Securities Regulatory Commission (CSRC) will also take place soon, which will scrape the QFII license eligibility requirement and largely expand the QFII investment scope. Since the launch of the Stock Connect program in 2014, The QFII program seems to have lost much of its traction as a market access channel to global investors. Will these ambitious new rules enable QFII to fight back to the central stage? What new opportunities will these new rules bring to global asset managers and investors, big and small, in their Chinese capital market adventure?
ATC Initiative interviewed Eugenie Shen, Managing Director and Head of Asset Management Group, Asia Securities Industry & Financial Markets Association (ASIFMA), and Melody Yang, Partner of Simmons & Simmons Law Firm. ASIFMA is an HK-based trade association that has regular high-level dialogues with Chinese regulators on market entry issues. Simmons & Simmons, a global law firm with a strong establishment in China, has helped many leading global investment houses in their pioneering activities in China.