Exploring China's latest moves on the consolidation, and the abolition of the investment quota limits, of the RQFII and QFII schemes.
In another important milestone for China and a key development for global investors, MSCI will quadruple the weighting of China A shares in its Emerging Markets (EM) Index this year. It has already completed the first of three increases in May 2019, taking the inclusion factor of China A Large Cap equities from 5% to 10%, with further rises to 15% and 20% planned for later in the year.
With Chinese government bonds and policy bank bonds now included in a widely tracked global bond index, China’s bond market has taken an evolutionary leap. Have investors leapt, too?
BNY Mellon hosted a live audio webcast, A Closer Look at Bond Connect in July. Magdalene Tay from BNY Mellon and industry experts from Bloomberg reviewed the scheme after passing its one year mark from its launch. They shared insights on the impending global bond indices inclusion, the challenges and opportunities for foreign investors.
The Renminbi Qualified Foreign Institutional Investor (RQFII) scheme is one of the five schemes that supports foreign access to China’s capital markets. The challenge then becomes which one to invest through or should it be more than one?
Just over three years old, the Stock Connect scheme linking the markets of Hong Kong and China has already emerged as one of the core pillars of international investors’ strategies to access Chinese equities—and with increasing global interest and participation—looks set to grow.
This paper provides an update on the developments of the Asia Region Funds Passport (ARFP) and closes with the benefits and challenges for fund managers looking to participate in this scheme.
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