DST Global Solutions has added new technology solutions to its product suite to help Chinese asset managers prepare for the recently launched RMB Qualified Foreign Institutional Investor (RQFII) regulation. China has become a strategic market for the securities industry as the government liberalizes the countrys investment laws to attract inflows and to accelerate RMB internationalization.
DST has been operating in China since 2003 and has provided its HiPortfolio asset servicing and fund accounting solution to the asset management industry. It continues to invest in the development of HiPortfolio to address the unique requirements of the Chinese market, including the ability to support a wide range of Chinese investment instruments, and more recently, the capability to process renminbi denominated funds outside of China.
China launched an RQFII pilot scheme in December 2011 to accelerate RMB internationalization and further facilitate the backflow of RMB. The guidelines were released in late 2011, with an initial investment quota of RMB 20 billion allocated to nine Chinese asset managers and 12 securities brokerages. The investment quota was increased to RMB 70 billion in April 2012.
Geoff Harries, Global Head of Asset Servicing, DST Global Solutions said, With the launch of the RQFII scheme, our clients in the fund management industry require a solution that is designed to work in global markets as well as help them meet the requirements of the Chinese fund management industry. As a client-responsive organization, DST Global Solutions is always on the lookout for upcoming changes in the industry and through its HiPortfolio solution has the flexibility to support our clients as they expand into RQFII products.
A member of senior management at a major Chinese asset management firm using HiPortfolio said, “We have been using HiPortfolio since 2004 and have been impressed with the depth of its functionality and its ability to handle all our requirements including recording, valuation, accounting and reporting. DST Global Solutions has long been committed to China as evidenced by the way they have responded to our needs and the regular enhancements made to HiPortfolio over the years. We have been offering trustee services for RQFII products since earlier this year and are delighted that HiPortfolio has the adaptability to support this development.”
(JDC)