Britain's vote to leave the EU has sparked more renminbi weakening and capital outflows from China. This trend could wreak havoc on markets, says Chi Lo of BNP Paribas Investment Partners.
Market participants say that RQFII recipients in Hong Kong will still have advantages over London and Singapore - for now.
Chinese fund management and securities firms say banks are charging up to 70% in trailer fees to distribute RQFII products, raising fears that little will be left after expenses.
Beijing’s need to keep a lid on inflation will see more foreign firms raising funds in the CNH market in order to invest directly into China.
HFT Investment Management joins a growing list of Chinese firms by opening a Hong Kong subsidiary to drive international growth.