Clifford Chance

Renminbi Qualified Foreign Institutional Investor Scheme Scaled Up

22 March 2013

In March 2013, China issued a new set of measures to govern onshore securities investment by Renminbi qualified foreign institutional investors (RQFII).  The new measures now expand the types of entities eligible to apply for RQFII licence.  Previous restrictions on the investment portfolio of RQFII funds are also lifted, while the scope of investment of RQFII funds is broadened.

This briefing gives an overview of the new RQFII scheme and details the eligibility requirements for RQFII licence and the investment scope of RQFII funds.  It also discusses controls on RQFII's remittance and repatriation of funds and its required account structure.   This briefing further annexes a high level comparison between the two schemes in terms of eligible institutions, currency of funds, quota, investment scope, remittance deadline and amount, lock-up period, repatriation, custodian and account structures.

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