Foreign investors face limitations on hedging and lending against their renminbi holdings at a time when their renminbi holdings are growing and the Chinese currency has depreciated.
As global uncertainties continue to brew, at AsianInvestor’s sixth Institutional Investment Forum China, CIC and CPIC reveal the biggest challenges they face.
The Chinese currency's breaching of a key level against the dollar has sparked market turmoil and will be posing some tough questions for asset owners.
Beijing has relaxed the renminbi qualified institutional investor (RQFII) quota rules, as it did for the QFII scheme in February. It is hoped the move will address capital-repatriation hurdles to MSCI inclusion.
The Chinese firm is postponing its UK plans due to Brexit-related uncertainty and lower foreign demand for RMB assets. Still, it expects mandates from European investors to start flowing soon.
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.