Chinese Asset Manager Mandates HSBC as RQFII Custodian

HSBC has been appointed sub custodian to Harvest Global Investments’ RQFII ETF tracking CSI300 Index, which is the first Luxembourg domiciled Renminbi Qualified Foreign Institutional Investor (RQFII) UCITS listed on London Stock Exchange.

Harvest is a Chinese asset manager with assets under management of over $49 billion.

The mandate follows an announcement last week that the China Securities Services Regulatory Commission (CSRC) granted a licence to enter China’s domestic securities market to asset manager Ashmore Group under the RQFII pilot scheme. As Ashmore Group’s onshore custodian bank, HSBC facilitated the company’s application for a licence.

HSBC was also appointed custodian bank for the CSOP Source FTSE China A50 UCITS ETF. The fund, which listed on Jan. 9, is the first ETF to be listed on the UK stock market using investment quota approved under the RQFII pilot scheme.

Cian Burke, global co-head, HSBC Securities Services, said: “This mandate further demonstrates HSBC’s understanding of the China market which gives us the capability to connect global investors to developing opportunities in China. We see significant demand for ETF products tracking physical China ‘A’ shares in Europe, and expect listings to expand to other major cities in Europe in the near future”.