The initial batch of four products listed in Hong Kong, which attracted $6.4 billion in inflows last year, suffered a combined exodus in February, raising questions for future launches.
Four subsidiaries of mainland managers have just added QFII quota to their existing RQFII allowances as they look to broaden their product offerings and compete with foreign firms.
China Southern’s HK arm is understood to be lining up clients in Europe and Asia for two equity-focused QFII funds after becoming one of six firms to be awarded a new QFII licence.
Global investors drive trading volumes after two Chinese fund houses introduce long-awaited HK dollar trading counters for their respective RQFII exchange-traded funds.
The firm says it wants the flexibility of the RQFII scheme to be adopted in order to create a level playing field between Chinese, Hong Kong and foreign ETF operators.
China’s CSRC grants approval to four fund houses as they seek to launch physically backed A-share ETFs in Hong Kong under the second batch of RQFII quotas.
Michael Wen, CIO at CSOP Asset Management, is hugely bullish about the investment outlook for both China-listed A-shares and Hong Kong-listed Chinese stocks.