Deutsche AWM Selects HSBC for RFQII Custody

Deutsche Asset & Wealth Management (Deutsche AWM) has mandated HSBC Securities Services to provide custody services for its Renminbi Qualified Foreign Institutional Investor (RFQII) scheme.

With this mandate, HSBC has become the first custodian bank to service a German RFQII.

As Deutsche AWM’s onshore custodian bank in China, HSBC facilitated its application for the RFQII Germany license. In July 20154, China announced it had extended the RFQII pilot scheme to Germany with a quota of $13 billion being allocated.

“This milestone also underlines Germany’s interest in developing its RMB business. Since the inception of the RQFII scheme in 2011, HSBC has been working closely with financial institutions around the world to help them access the Chinese market,” says Cian Burke, global head of Securities Services, HSBC.

As of February 27 2015, HSBC was the custodian bank for $23.2 billion of investment quota for QFIIs, equivalent to 33.34% of the total amount approved.