The world's local bank
HSBC obtains licence to invest in renminbi-denominated securities in China
20 August 2003
HSBC has obtained approval for its Qualified Foreign Institutional Investor (QFII) licence from the China Securities and Regulatory Commission (CSRC).
The QFII licence gives HSBC the opportunity to invest in China’s local currency denominated securities on its stock exchanges.
Before HSBC starts trading, further approval for a QFII investment quota is necessary from the State Administration of Foreign Exchange Control (SAFE). HSBC is applying for an initial investment quota of US$100 million.
The bank intends to invest in renminbi-denominated securities across a range of sectors including government bonds, corporate bonds and equities.
Anthony Rademeyer, Head of Corporate, Investment Banking Markets, Asia-Pacific said: "HSBC has been a strong supporter of the QFII programme, which we believe will benefit China and foreign investors. We are delighted the CSRC has approved our QFII application and look forward to starting investment activities under the programme."
HSBC was the first foreign bank in mainland China to have obtained licences for both QFII and the custodian service for QFIIs. Seven foreign financial institutions have been granted access under the QFII scheme launched late last year, including UBS, Normura, Deutsche Bank, Morgan Stanley, Citigroup, Goldman Sachs and HSBC.
Established in Hong Kong and Shanghai in 1865, HSBC is unique among foreign banks in having had a continuous presence in mainland China for 138 years. Today, HSBC is the largest foreign bank in mainland China with 29 offices. The bank’s China head office is in Pudong, Shanghai.
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