BNP Paribas’ international client base will gain access to Chinese stocks and fixed income markets, as the firm reported that it has acquired approval from the state financial regulators as an RMB Qualified Foreign Institutional Investors (RQFII). The move highlights the significance of China’s position as an investment magnet for institutional investors.
BNP Paribas extends its global footprint through the new license issued by the China Securities Regulatory Commission (CSRC), the country’s main financial watchdog for listed instruments.
Ligia Torres, Head of Asia Pacific & Emerging Markets, spoke about the new approval: “The French authorities were the first in the Eurozone to obtain the RQFII quota in March 2014. RMB Internationalisation is indeed rapidly developing and will continue to impact the global financial landscape in the coming years.
Today, being granted one of the first RQFII licenses in the Eurozone, places us in an ideal position to further develop our client offer. BNPP IP has already a long-term presence and leadership position in Greater China which makes it a perfect partner for clients looking for Chinese exposure.”
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The announcement brings satisfaction to France, as its premier banking institute becomes one of the first companies in France and the Eurozone to be granted an RQFII license, allowing it to provide its clients with direct access to the Chinese domestic capital markets, including A-shares and onshore bond markets, all denominated in RMB.
The French listed bank has been active in the mainland for a decade, having established its presence in 2004 and has been operating with a QFII license.
China has been gradually lifting the restrictions on its mammoth economy, investors in developed markets have been keen to exploit the growth potential in the country. The RQFII programme helps financial services firms access the world’s second largest economy.
Registered firms are allowed to invest offshore yuan in the country’s financial markets, including Chinese stocks, bonds and money market products. The scheme is currently open to firms in four countries; Hong Kong, UK , Singapore and France.