JPMorgan Adds Chinese RQFII License for Singapore Asset Management Unit

JPMorgan Asset Management Singapore has announced today that it has received a Qualified Foreign Institutional Investor (RQFII) license from the China Securities Regulatory Commission (CSRC). The RQFII licenses were created by China to permit approved foreign financial firms to invest in its RMB denominated onshore market. The Chinese securities market is split between “A-shares,” which are RMB denominated instruments that trade on the Shanghai and Shenzen stock exchanges, and “B-shares,” which are for foreign denominated Chinese Equities Equities Equities can be characterized as stocks or shares in a company that investors can buy or sell. When you buy a stock, you are in essence buying an equity, becoming a partial owner of shares in a specific company or fund.However, equities do not pay a fixed interest rate, and as such are not considered guaranteed income. As such, equity markets are often associated with risk.When a company issues bonds, it’s taking loans from buyers. When a company offers shares, on the other hand, it’s selling pa Equities can be characterized as stocks or shares in a company that investors can buy or sell. When you buy a stock, you are in essence buying an equity, becoming a partial owner of shares in a specific company or fund.However, equities do not pay a fixed interest rate, and as such are not considered guaranteed income. As such, equity markets are often associated with risk.When a company issues bonds, it’s taking loans from buyers. When a company offers shares, on the other hand, it’s selling pa Read this Term.

With the RQFII license, JPMorgan will be able to invest funds for its customers in a wider selection of Chinese assets, including the above mentioned A-shares, bonds and money market instruments. According to JPMorgan in their public announcement of the news, the seeking of the license was attributed to meeting demand from clients for Chinese securities who want to invest in the growing market. On this, Steven Billiet, CEO of JPMorgan Asset Management (Singapore) Ltd., stated, “We are delighted to be awarded the RQFII licence. It will help us meet the growing demand of investors for Chinese bonds, stocks and money-market instruments.”

The RFQII status for its Singapore asset management unit adds to JPMorgan’s approved licenses for trading in China, where it also holds an RMB $1 billion RQFII investment quota in Hong Kong. According to the investment bank, JPMorgan Asset Management Singapore has $6.9 billion in assets under management.