Because the Luxembourg-domiciled fund has yet to be formally listed, the CSSF is not saying which company has been given the authorisation for an RQFII Ucits fund. However, at least one published report has said that two companies are involved, and that they are China’s Harvest Global Investments and Germany’s Deutsche Asset & Wealth Management.
As provided for by the Luxembourg regulations, The newly-authorised RQFII Ucits fund may invest 100% of its net assets in China A-shares. It may invest in these shares through the use of the RQFII quota granted to its manager by the relevant Chinese authorities, according to a statement released today by Luxembourg for Finance and the Association of the Luxembourg Fund Industry.
The RQFII programme was launched two years ago as a means of expanding China’s asset management industry. It allows overseas investors to use offshore RMB deposits to invest in mainland China securities markets.
According to Luxembourg for Finance, as of June this year, 18 asset managers have thus far established RMB-denominated funds in Luxembourg, representing a total of more than RMB220bn ($164m, £102.1m) in assets under management.
With RMB56bn in deposits and more than RMB67bn in loans in Q3 2013, Luxembourg claims to be the financial centre with largest RMB business volumes in the Eurozone.
