Hong Kong stockbrokers and insurers voiced their disappointment yesterday at reports that only mainland firms will be approved to make yuan investments in mainland markets.
According to mainland media reports, the mainland's securities watchdog has approved the first batch of nine companies to take part in the yuan-denominated qualified foreign institutional investors (RQFII) scheme. The scheme will allow them to invest yuan held by Hong Kong or overseas investors in the mainland market.
The scheme has an initial quota of 20 billion yuan (HK$24.4 billion). It is part of Beijing's plan to boost the international status of the yuan.
The existing QFII scheme allows international banks and brokers to apply for quota from the China Securities Regulatory Commission to make US-dollar-denominated investments in the mainland. Local brokers and insurance companies were disappointed that the first firms chosen are based on the mainland.
Neither the watchdog nor any of the nine firms returned calls seeking confirmation of the reports.
The nine are E Fund Management, Bosera Asset Management, China Southern Fund Management, China Asset Management, Hua An Fund Management, Dacheng Fund Management, China Universal Asset Management, HFT Investment Management and Harvest Fund Management.