The RQFII will enable the asset manager to meet the growing demand of investors for Chinese bonds, stocks and money-market instruments, according to JPMAM chief executive Steven Billiet.
“Although we expect downward pressure on the Chinese economy from the slowing property market and the corporate de-leveraging, we see domestic consumption and exports to a recovering US economy supporting top line growth and China enjoying renewed investor interest,” Billiet said.
The fund house said it will apply to the State Administration of Foreign Exchange (SAFE) for an RQFII investment quota and plans to utilise the quota to extend its range of RMB product offerings to its clients.
JP Morgan’s Hong Kong unit already has RMB1bn ($0.16bn) quota awarded last year by SAFE.
In October Billiet told (International Adviser‘s sister publication) Fund Selector Asia that the firm was awaiting its RQFII licence in order to expand its China-focused range of products.
In August, JP Morgan unveiled its actively-managed RQFII equity fund which seeks to explore avenues in China’s A-share market.
In Singapore, JP Morgan manages $6.9bn in assets under management.
