Lawyers in Beijing have branded Chinas pilot Renminbi
qualified foreign institutional investors (RQFII) programme as
unfair and ineffective.
December, the China Securities Regulatory Commission (CSRC),
the Peoples Bank of China (PBOC), and the State
Administration of Foreign Exchange (Safe) launched the
the programme authorised entities, with the approval of CSRC
through a quota granted by Safe, are allowed to use RMB funds
raised in Hong Kong to invest in the PRC securities
scheme is effectively an RMB-settled version of the
pre-existing QFII scheme, which is foreign-currency settled. It
aims to diversify the investment channels for RMB in Hong Kong
and bolster take-up for offshore RMB funds.
But one Beijing-based capital markets lawyer told IFLR the
new rules were only a gesture. Central
government instigated the programme in a bid to tap Hong