Nikko Asset Management awarded RQFII in Singapore

Press Release

29 May 2014
  • Tapping opportunities in China A shares and onshore bonds

Nikko Asset Management in Singapore is one of the first asset managers to be awarded the Renminbi Qualified Foreign Institutional Investor (RQFII) licence by the China Securities Regulatory Commission (CSRC). Under the terms of the RQFII approval, the company is now able to invest offshore RMB capital into China A shares and onshore bonds, previously restricted to domestic investors and qualified institutional investors.

"This strategic development allows Nikko AM to provide our clients with access to the domestic capital markets in China and expand our repertoire of innovative investment solutions," said Eleanor Seet, President of Nikko Asset Management Asia.

With about US$4 trillion, the Chinese onshore bond market is the largest in Asia ex-Japan and 5-year government bond yields hover around 4% compared to offshore yields of 3%.

"There is keen interest from investors in Singapore and around the region. Our partners and distributors have already expressed their interest in products we are planning," Seet added.

The firm plans to launch a China onshore bond fund later in the year and the next step is attaining the approval for quota from the State Administration of Foreign Exchange (SAFE) in China. To complete the product offering, the firm will look at tapping opportunities in A shares and China balanced mandates subsequently.

Nikko Asset Management has over 30 years of experience in managing Asian fixed income. It was one of the first to launch an offshore RMB bond fund in November 2010, shortly after the liberalisation of the market.

In Japan, Nikko Asset Management was granted QFII (Qualified Foreign Institutional Investor) status in December 2003 and has been managing Chinese equity portfolios since 2005.

– ENDS –

For inquiries, please contact:

Jeanie Cheah
Tel: +65-6500-5793

About Nikko Asset Management

With USD203.9 billion* under management, Nikko Asset Management is one of Asia’s largest asset managers, providing high-conviction, active fund management across a range of equity, fixed income, multi-asset and alternative strategies. In addition, its complementary range of passive strategies covers more than 20 indices and includes some of Asia’s leading exchange-traded funds (ETFs).

Headquartered in Asia since 1959, Nikko Asset Management and its subsidiaries employ personnel representing around 30 nationalities, including approximately 200 investment professionals**. The firm has a presence through subsidiaries or affiliates in a total of 11 countries and regions. More than 400 banks, brokers, financial advisors and life insurance companies around the world distribute the firm’s products.

The investment teams benefit from a unique global perspective complemented by the firm's historic Asian DNA, striving to deliver consistent excellence in performance. The firm also prides itself on its progressive, solution-driven approach, which has led to many innovative funds launched for its clients.

For more information about Nikko Asset Management and to access its investment insights, please visit the firm’s homepage.

* Consolidated assets under management and sub-advisory of Nikko Asset Management and its subsidiaries as of .
** Including employees of Nikko Asset Management and its subsidiaries as of .

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