China’s central bank, the People’s Bank of China has approved the Renminbi Qualified Domestic Institutional Investor (RQDII) programme, which will allow certain domestic institutional investors to buy offshore renminbi products.
Fund management companies, brokerages, banks and insurers can use their own funds for investment or raise money onshore. The RQDII programme will not be restricted by quotas.
We reported last week that the Australian Securities Exchange has expanded cooperation with the Bank of China, which will act as a renminbi clearing bank in Australia. It has also been announced that China will grant an RMB 50 billion quota of investment to
Australian financial institutions under the Renminbi Qualified Foreign Institutional Investor (RQFII) programme.
The deal means that the RQFII quota has now been issued to nine countries and regions, with a cumulative total of RMB 770 billion.