Singapore doubles RMB qualified FII investment quota in Chinese financial markets

Image from Monetary Authority of Singapore

Singapore’s RMB Qualified Foreign Institutional Investor (RQFII) quota for investment in Chinese financial markets will be doubled in a move aimed at strengthening cross-border flows in the yuan between the two countries, Singapore’s central bank said on Monday.

The Monetary Authority of Singapore said the city-state’s quota under the RMB Qualified Foreign Institutional Investor (RQFII) scheme would be increased to 100 billion yuan ($15.72 billion) from 50 billion yuan previously.

The RQFII programme is the yuan-denominated version of the Qualified Foreign Institutional Investor (QFII) scheme, which was created by China to allow foreigners to invest in Chinese capital markets.

“This is in response to the strong interest by Singapore-based asset managers and investors to invest in China,” the MAS said in a statement.

The announcement came in the wake of a state visit by Chinese President Xi Jinping to Singapore last week to mark 25 years of formal diplomatic relations between the two countries.

The MAS said China and Singapore also agreed to extend to Chongqing Municipality the same cross-border RMB initiatives that are now in place for Suzhou and Tianjin.

“This means, for example, that Singapore-based banks will be allowed to lend RMB to companies in Chongqing and Chongqing-based companies may issue RMB bonds in Singapore and fully repatriate the proceeds,” the MAS said.

In addition, the MAS said it had agreed with the People’s Bank of China to renew and enhance the bilateral currency swap agreement established between the two central banks.

The existing swap agreement was signed in March 2013 and is due to expire in March 2016, the MAS said.

Under the current arrangement, up to 300 billion yuan in yuan liquidity can be made available to eligible financial institutions operating in Singapore, while up to 60 billion Singapore dollars ($42.10 billion) in Singapore dollar liquidity can be made available to eligible financial institutions in China.

($1 = 6.3600 Chinese yuan) ($1 = 1.4252 Singapore dollars)

(Editing by Sam Holmes)

Reuters

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.