For example, QFII program participants must convert their foreign currency into renminbi before investing in Chinese securities. RQFII participants, however, do not need to convert their currency and can invest directly in China's domestic capital markets. However, that has now changed. These new rules, along with the lifting of quota restrictions, are seen as China's attempts to make trading in their bond and stock markets more widely accepted among international investors.
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Your Money. Personal Finance. Your Practice. Other qualified overseas institutions which meet regulatory requirements. Scope of Services i. Basic services 1 Agency service: application for QFII qualification, investment quota, opening of foreign exchange account, special RMB account and securities account, and proxy voting etc.
Value-added service 1 Performance evaluation: performance estimation and evaluation for QFII portfolios; 2 Risk management: QFII investment risk warning and risk assessment report; 3 Cash management: multiple cash management instruments for QFII customers; 4 Electronic banking: uploading and downloading of electronic banking data; 5 Tax agency: Declare and pay taxes for QFII customers as an agent; 6 Customized reports: provide reports in customized types and formats; 7 Other services: other customised requests proposed by QFII customers.
Already client? Our latest award. Scope Eligible foreign applicants now include: Foreign fund management institutions Commercial banks Insurance companies Securities companies Futures companies Trust companies Government investment management companies Sovereign funds Pension funds Charity funds Endowment funds International organisations and other institutions recognised by the CSRC. QFI Criteria The new QFI scheme has relaxed eligibility requirements by removing the net assets requirement, minimum business operating period requirement, etc.
If such an account is opened, the QFI will need to disclose the names and details of the assets of the ultimate investors or funds through the custodian banks. In addition, the QFI Rules have also provided the legal basis for the acknowledgement of the ownership of funds sitting in the relevant investment accounts, i.
The previous limits on the number of brokers i. This lifting will enable QFIs to carry on financial trading based solely on their commercial needs. In practice, international asset managers may, due to group level commercial requirements e.
The QFI Rules have now provided this flexibility and feasibility in the following circumstances: i any change of the business operating parties which are under the same control; ii any adjustment of accounts arrangement by the same QFI; and iii any change of managers of fund products or accounts. Having removed regulatory obstacles and simplified the investment process, the QFI Rules tougher with the earlier SAFE QFI Rules have become a new regulatory landmark to attract foreign institutional investments in the Chinese financial markets.
We believe that the new QFI regime will serve to stimulate and vitalize the Chinese financial markets and economy. United States November 11,
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