The approval has been accorded to BNP Paribas Asset Management SAS, a French-regulated entity of BNP Paribas Investment Partners.
The fund house said it is one of the first companies in the Eurozone to be granted this license by the CSRC.
The license will enable the fund house to offer its retail and institutional clients direct and straightforward access to the growing Chinese economy. The firm has been providing global clients with access to the Chinese market since 2004 as a QFII manager.
“We expect our first funds to be launched in a few months from now, pending the approval from the Chinese Authorities. Our new fund range will include various types of securities namely, equities, bonds, and money market [products],” a spokesman for the firm told FSA.
“Due to the improved liquidity, RQFII now also enables BNPP IP to offer UCITS-compliant solutions which invest only in mainland China securities.”
China begins to shine
The fund house will offer investment solutions to clients looking to tap into the significant growth of China, said Vincent Camerlynck, CEO Asia Pacific.
“The momentum for RMB internationalisation has never been stronger, as we see our clients expressing interest in embracing the opportunities linked to the recent economic and financial reforms.”
Clients have shown a strong appetite for investing in Chinese fixed income due to their attractive yields, robust credit quality, and low volatility of the RMB, he added.
At the same time, institutional investors are structurally underweight the second largest economy worldwide and are now looking to fill this gap with the new investment opportunities that are being offered.
Recent Developements
Ashmore, the first fund house to get the RQFII access outside of Hong Kong, unveiled three China-focussed funds early September.
Many asset managers are seeking to tap the demand for RMB products by launching new funds or introducing new share classes following the Chinese government’s measures to take the RQFII pilot programme out of Hong Kong to Singapore, the UK, Germany and South Korea, which was the latest to receive RQFII quotas.
HSBC Global Asset Management and Nikko Asset Management have recently launched their China onshore fixed income funds while Fullerton Fund Management has also secured a similar license.
BlackRock was recently granted an RQFII license for the UK.
