HSBC will provide assets services to Korean-based Shinhan BNP Paribas Asset Management, making it the first Korean institutional investor to access China’s onshore capital markets via the Renminbi Foreign Institutional Investor (RQFII) scheme.
The bank will facilitate Shinhan BNP Paribas’s application process and act as trustee, global custodian and RFQII custodian for its RFQII funds.
“We are delighted to become the first custodian bank servicing RGQII Korean investors. This landmark deal also helps Korea as an offshore RMB centre by opening up a new channel of RMB flows back into China,” says Martin Tricaud, president and CEO for HSBC in Korea.
“We will continue to support the Korean government initiative to promote RMB internationalization in Korea and to ensure that our clients here benefit from the globalization of China’s currency.”
In July China allocated an RMB 80 billion RGQII quota to Korea as part of a policy of opening up its domestic capital markets to global investors.
Korea is the latest country to be granted access to China’s onshore capital markets by the bank, after HSBC was named the first custodian bank for a Singapore-based RFQII manager in May this year.
HSBC Grants First Korean Institutional Investor China Access
HSBC will provide assets services to Korean-based Shinhan BNP Paribas Asset Management, making it the first Korean institutional investor to access China’s onshore capital markets via the Renminbi Foreign Institutional Investor (RQFII) scheme.
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