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Fullerton Fund gains RQFII status to tap China financial markets

Singapore-based Fullerton Fund Management has joined the ranks of firms that will be allowed to tap offshore renminbi (RMB) deposits for investments in China's domestic stock and bond markets.

SINGAPORE: Singapore-based Fullerton Fund Management has joined the ranks of firms that will be allowed to tap offshore renminbi (RMB) deposits for investments in China's domestic stock and bond markets.

In a statement on Monday, the Temasek-linked fund management firm said it has received RMB Qualified Foreign Institutional Investors (RQFII) status from the China Securities Regulatory Commission (CSRC).

The RQFII scheme allows international money managers to tap the large pools of offshore RMB funds for more efficient access to China's onshore capital markets.

Among its advantages are improved ease of repatriation of funds and more flexible investment guidelines that allow investors to allocate across equities and fixed income.

Manraj Sekhon, Fullerton's chief executive and chief investment officer, said: "As the country continues to liberalise its markets and capital account, we expect international demand for RMB-denominated assets to increase."

"Having an RQFII licence will provide unprecedented opportunities to participate in China's growth," he added.

In addition to the RQFII licence, Fullerton has held a Qualified Foreign Institutional Investors (QFII) licence since May 2012.

Under the QFII scheme, foreign institutions raising funds in foreign currencies offshore can convert the money into RMB to invest in China-listed A shares.

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