On 21 December 2016, the People’s Bank of China (PBOC) announced that Ireland had been granted a RMB 50 billion Renminbi Qualified Foreign Institutional Investor (RQFII) quota. This means that Irish fund structures may gain direct access to the RQFII regime through an Irish RQFII quota, and thus fund managers may use Ireland as a platform for cross-border distribution. A qualifying applicant may apply for a RQFII licence from the China Securities Regulatory Commission (CSRC), an investment quota from the State Administration of Foreign Exchange (SAFE), and, if the applicant intends to gain access to China’s interbank bond market, an approval from the PBOC.
Deacons has a long history of acting for Irish fund managers, such as Baring International Fund Managers (Ireland) Limited and Pinebridge Investments Ireland Limited, in the Hong Kong authorisation of their investment products.
Deacons has been actively assisting clients on a wide range of RQFII-related matters since commencement of the RQFII regime in 2011. We have extensive experience in representing RQFII managers, to set up RQFII funds and review service agreements with PRC custodian banks and brokerage firms. We frequently advise third parties such as trustees that provide services to RQFII funds and investors who look to gain China exposure by appointing RQFII mandates or investing into RQFII funds.