Two market-opening moves by Beijing last month have further reduced the value of RQFII quotas. This is a particular challenge for the offshore arms of mainland fund houses.
Chinese fund managers in Hong Kong have been warned that Stock Connect and global competitors will erode their RQFII position, so they need to boost their skills to offer clients value-added services.
Like other fund firms, HFT Investment Management's Hong Kong arm is seeking to exploit a new distribution channel – Taiwanese offshore banking units.
HFT Investment Management has launched the first RQFII fixed income fund to invest in RMB bonds issued both on the mainland and offshore. More are forecast to follow.
Fresh from winning its QFII licence and new RQFII quota, HFT Investment Management's Hong Kong unit aims to profit from China's ongoing currency liberalisation.