Posted inBusiness moves

Ashmore granted licence to invest in China market

Ashmore has become the first fund manager outside of Hong Kong to receive a licence which will allow it to invest in Chinas domestic securities market.

The RMB Qualified Foreign Institutional Investors (RQFII) licence, which was given to the company by the China Securities Regulatory Commission (CSRC), allows international investors “unprecedented access to the Chinese onshore equity and fixed income markets”.

Christoph Hofmann, Ashmore’s global head of distribution said: “The Chinese investment market is one the most dynamic in the world, and securing this licence from the CSRC is a reflection of Ashmore’s long-standing commitment and deep ties to China.

“Many of our clients are looking for ways to make dedicated investments in China as part of their well-diversified global portfolios.  We are very proud that Ashmore has been chosen as the first foreign asset manager to be granted access to one of the most compelling investment opportunities of our time.”

Ashmore said the RQFII scheme allows for improved ease of repatriation of funds compared to the existing Qualified Foreign Institutional Investor scheme and provides more flexible investment guidelines for investors looking to invest in China. The firm added this additional flexibility will have “numerous benefits” for its clients.

Jan Dehn, Ashmore’s head of research said: “China has been one of the most compelling, yet difficult markets for investors to access. The scale of the investment opportunity in China is enormous. 

“China’s over US$4trn Interbank Bond market is poised for considerable growth and development as China continues to liberalise, and the over US$3.5trn A-shares equity market already has a market capitalisation above that of the London Stock Exchange. Both these markets have traditionally been difficult for international investors to access until now.”

Part of the Mark Allen Group.