Hong Kong welcomes RQFII expansion

Revised rules cover all Hong Kong-licensed asset management companies.

The Renminbi Qualified Foreign Institutional Investor pilot scheme rules on investment restriction relaxation will also be conducive to launching more innovative and diversified renminbi investment products in Hong Kong.

Financial Secretary John Tsang said the RQFII pilot scheme expansion will further deepen the renminbi offshore business in Hong Kong. It will also enhance the cross-border use and circulation of renminbi funds between the Mainland and Hong Kong, thus promoting the internationalization process of the renminbi.

Under the revised rules, institution types eligible to apply for RQFII now include Mainland commercial banks' and insurance companies' Hong Kong subsidiaries, and financial institutions that are registered and have major operations in Hong Kong.
The RQFII funds investment restriction has also been relaxed, allowing institutions to design product types in accordance with market conditions.