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Investor Presentaiton

QFII and RQFII: Main Channel For China A Shares Investment The QFII scheme was established in 2002 to attracted foreign institutional investors to invest in China's domestic A-share market. RQFII was launched around 10 years after the QFII schemes to be further expanded to meet the increasing demand for offshore RMB products. QFII Scheme The Qualified Foreign Institutional Investors (QFII) scheme is a program that allows foreign asset owners, sell sides and asset managers to make foreign currency -denominated (primarily USD) investments into securities markets on the China. The QFII scheme has transformed from an initial test-bed for foreign participation in the China securities market to the cornerstone of China's cross-border programs. We believe QFII will paly a pivotal role in the opening of China's capital account. QFIls Around the World RQFII Scheme The RMB Qualified Foreign Institutional Investors (RQFII) scheme is to promote usage of the RMB abroad by providing a RMB-denominated investment channel into China's capital-controlled environment. The RQFII scheme has been dominated by asset managers since the scheme's inception in 2011. We are now seeing the scheme grow to include asset owners and the sell side. Continuous Expansion of RQFII (RMB in Billions) Country/ Region Inception Date Quota Ceiling No. of RQFIls with Quota Total Approved Quota Hong Kong 2011 270 79 270 Singapore 2013 100 23 56.5 UK 2013 80 15 30.1 France 2014 80 7 24 Korea 2014 120 34 74 North America 59 USD 11.038 bn Germany 2014 80 2 6.543 Qatar 2014 Canada 2014 Australia 2014 Middle East Europe 65 USD17.128 bn Switzerland 2015 Luxemburg 2015 USD 5 bn Africa APAC 169 Chile 2015 USD 0.15 bn USD 47.865 bn Hungary 2015 No. of QFIIS • Size of Quota Malaysia 2015 UAE 2015 Thailand 2015 엉엉엉엉엉엉엉엉엉 8 30 50 50 50 50 02113 0 1.825 30 5 50 50 50 0 50 50 United States 2016 250 O O O O O o O o O o 10 0 0 0 0 0 0 Source: CSRC, SAFE. 99 citi
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