HK approval of renminbi-denominated bond funds 'spur investor access to China'

The decision by Hong Kong's Securities and Futures Commission (SFC) to approve renminbi-denominated bond funds will improve investor access to China, it has been claimed.

According to Sally Wong, chief executive of the Hong Kong Investment Funds Association, the move will also help to internationalise the currency.

SFC approval of several new funds will allow fund managers to start renminbi-qualified foreign institutional investor (RQFII) businesses in the territory.

Ms Wong said that approval of the RQFII programme is a "milestone" towards investment in mainland renminbi-denominated bonds, Citywire Global reports.

Speaking to the publication, she said: "RQFII provides a very important channel for renmimbi deposits that are accumulated offshore to gain exposure to the mainland capital markets - both the interbank bond market and the listed ones."

In September 2011, investors withdrew $496 million from Hong Kong retail funds, a figure that stood at $290 million in October.

Bond fund sales are growing rapidly and now make up almost half of all fund sales in Hong Kong.

If you would like to discuss how we can assist you further please contact us on Tel: +44 (0)20 32077400 or email.ADNFCR-2318-ID-801260311-ADNFCR