Renminbi Qualified Foreign Institutional Investor (RQFII) is a licence granted by Chinese regulators to offshore investors in order to access the onshore market. We have seen three generations of RQFII structures since its inception in 2011, and the latest version – the Segregated Managed Account route, which was introduced about a year ago – has made it very time-efficient for a trade to take place. Although the Segregated Managed Account can only allow offshore investors to buy exchange-traded securities, from an efficiency perspective, it has still proven worthwhile for many of our clients to execute transactions via this route. To further enhance the return for our offshore investors, we are happy to provide leverage to RQFII.
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