Beijing has further liberalised the QFII scheme in respect of the quota approval process and capital repatriation rules – moves seen as targeting A-share inclusion in the MSCI global benchmark.
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The Beijing Administration of Industry and Commerce has reportedly suspended registrations of private investment firms as part of a wider tightening of regulations.
The Hong Kong-China mutual recognition of funds scheme will drive QDII product liquidations and make the scheme redundant, argues Neil Flynn of Z-Ben Advisors.
New rules will allow foreign investors to have controlling stakes in domestic Chinese trust firms, Z-Ben chief says. QFII reforms will include the introduction of daily repatriation and a $5bn quota cap.
The city plans to raise permits for its cross-border investment scheme to 15 this year as competition intensifies with Shanghai and Qingdao, which offer similar programmes.
The firm's new head of Hong Kong and China retail, Eddy Wong, wants to partner foreign bank distributors to tap unutilised demand for overseas product. He is also in the hiring markets.
Proposed new rules for China’s state pension fund point to more flexibility over what it can invest in when it comes to foreign and private equity assets.
Northbound trades on the Shanghai-Hong Kong stocks link are forecast to reach their daily quota limit when the scheme starts today after the finance ministry granted a tax waiver.
The China Securities Regulatory Commission has thrown its weight behind reform of foreign ownership limits and the pension system, and voiced support for the extension of mutual recognition beyond Hong Kong.
Authorities release draft regulations for the pending scheme to link the two bourses, although updates on taxation and how trades can be placed are still to be announced.
General manager Gao Xiqing has retired from CIC, to be replaced by CIO Li Keping, report media, sparking speculation about a change in investment direction and reliance on external managers.
Tapping the mainland market is as tough as ever for foreign asset managers, particularly given the current environment, say industry experts.
