HSBC has become the first custodian in China to service a Renminbi Qualified Foreign Institutional Investor (RFQII) based in Canada.
HSBC will provide custodian services for CI Investments, allowing the firm to invest in China’s domestic capital markets.
“This marks a significant step for RMB internationalisation in the Americas and the progressive role that HSBC’s plays in this,” says Sophia Chung, head of Securities Services, China, HSBC.
In November 2014, China announced it had extended the RFQII pilot programme to Canada with a quota of RMB50 billion ($8.6 billion) being allocated.
“In China, we see long-term economic growth and attractive investment opportunities for our investors. The experience, capabilities and support of the HSBC team have been key to connecting us with the evolving opportunities that China presents,” adds Eric Bushell, senior vice president, CI Investments.
In June, HSBC became the first custodian bank in China to service a RFQII programme for Switzerland. It was also selected by Deutsche Asset Wealth and Management (Deutsche AWM) to provide custodian services for its RFQII investments.