Australia is set to be the next developed country to get
permission to use the renminbi qualified foreign institutional
investor (RQFII) programme, according to Alexa Lam at the Hong
Kong Securities and Futures Commission (SFC).
RQFII has been a key tool in China’s project to
internationalise its currency the renminbi (RMB).
Launched in 2011, RQFII allows financial institutions to use
offshore RMB to invest in the mainland’s
securities markets. It is a key part of China’s
reforms to liberalise its capital markets, allowing the RMB to
trade more freely against other currencies.
"Other than the developed world, China will probably also
start giving small RQFII quotas to countries on the New Silk
Road," added Lam, deputy chief executive officer and
member of the SFC's board. Lam was speaking at the Asia
Securities and Financial Markets Association’s
(Asifma) RMB markets conference in London.
China’s New Silk...