Irish funds get enhanced access to Chinese markets via RQFII and Stock Connect
Irish Funds welcomes the recent announcement by the People’s Bank of China and the Irish authorities that Ireland has been granted a RMB 50 billion quota under the RQFII1 Scheme. This important announcement recognises Ireland’s position as a leading cross-border funds centre and comes very quickly after confirmation that the Central Bank of Ireland is in a position to accept applications from Irish domiciled UCITS and AIFs to invest through the Shenzhen-Hong Kong Stock Connect (“Shenzhen Connect”) programme.
These are strategically important and timely developments given the growing relevance of holdings in Chinese securities by global fund managers. Ireland’s position as the third largest global funds centre2 and as the European location of choice for ETFs will also be bolstered by the announcement in advance of possible index inclusions for Chinese shares.
1 Renminbi Qualified Foreign Institutional Investor
2 Source: Q3 2016 International Statistical Release, EFAMA