Kuala Lumpur, March 6 - CIMB-Principal Asset Management Bhd has become the first asset management company in Malaysia to obtain the Renminbi Qualified Foreign Institutional Investor (RQFII) licence.
The licence was recently awarded to CIMB-Principal by the China Securities Regulatory Commission (“CSRC”).
Munirah Khairuddin, Chief Executive Officer of CIMB-Principal said, “With the RQFII licence, we will have direct access into China’s capital markets and invest in the hitherto inaccessible products such as the A-shares and bonds of China entities.”
“We plan to develop and introduce more innovative products that invest in China onshore securities, as well as diversify some existing investment portfolios directly into China’s onshore equities and fixed income securities. This, I believe, will definitely add value to our customer proposition for both Malaysian and international clients.”
CIMB-Principal has appointed HSBC (Malaysia) Trustee Bhd as Trustee, The Hongkong and Shanghai Banking Corporation Limited as Global Custodian and HSBC Bank (China) Company Limited as its China RQFII custodian.
As the onshore custodian bank in China, HSBC facilitated CIMB-Principal’s application for the first Malaysia RQFII licence, demonstrating its continued leadership in helping global investors access the Chinese securities markets.
Commenting on the announcement, Mukhtar Hussain, Chief Executive Officer of HSBC Malaysia said, “We are proud to be appointed the custodian bank for Malaysia’s first RQFII. The size of the RQFII quota granted to Malaysia is further evidence of China’s commitment to granting investors greater access to its markets.”
“We are confident this will be the first of many investments flowing through the China-Malaysia business corridor, which is growing in importance every year. HSBC has a number of firsts in servicing institutional investors in China. We are delighted to add another notch to our already stellar track record.”
In November 2015, China extended the RQFII programme to Malaysia with an initial RQFII quota of RMB50 billion. This makes Malaysia the 14th overseas jurisdiction to be included in the RQFII programme, which has already embraced markets such as Korea, Singapore and the United Kingdom.
To-date, CIMB-Principal has a total of 63 unit trust funds (of which 19 are Shariah compliant), 19 wholesale funds, 10 Private Retirement Scheme (PRS) funds and two exchange-traded funds (ETFs).