Investor Presentaiton
Key Highlights of R-QFII New Rules
SAFE announced the new R-QFII rules on September 5, 2016
ligh
Simplified Quota Approval Mechanism
•
•
•
Basic Quota. R-QFII can make a filing with SAFE for a
"basic investment quota" based on certain % of its total asset
or AUM.
For certain types of R-QFIIs such as SWFs, central banks
and monetary authorities, the Basic Quota will not apply
and they shall self-determine the intended investment quota
through filing process.
SAFE's approval is only required when the quota being
applied for exceeds the Basic Quota.
Type of R-QFII
Basic Quota Calculation
For R-QFII or its
group company
with majority of
assets (or assets
under
management)
outside of
China
USD 100 million in RMB equivalent
+ 0.2% of the average assets size in
the latest three years
- Existing QFII quota (in RMB)
I
Injection period removed and lock-up period improved
3 months lock-up period for all the R-QFIIs except open
ended fund, commence from the date when accumulated
principal injection reaches to RMB 100 million.
For R-QFII or its
group company
with majority of
assets (or assets
under
management)
inside of China
RMB 5 billion
+ 80% of the average assets size in
the last fiscal year
- Existing QFII quota (in RMB)
Flexible cross-border remittance
•
•
Daily injection or repatriation are allowed for all R-QFII
product types.
Re-injection of principal is now allowed for non-open-end
fund within the investment quota.
Foreign SWFs,
Central Banks
and international
monetary
authorities
Determine the intended investment quota at
its own discretion.
101
Citi®
HView entire presentation