SFC reveals next offshore RMB hotspots

Author: Gemma Varriale | Published: 24 Nov 2014

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...