CSSF grants approval to R-QFII manager outside Greater China
Following an announcement made by Luxembourg law firm Arendt & Medernach, Ashmore Investment Management Limited (Ashmore) has received approval from the Luxembourg regulator (the CSSF) for a Luxembourg R-QFII UCITS managed by a R-QFII manager based outside Greater China.
Earlier this year, Ashmore became the first manager based outside Greater China to be granted a R-QFII license by the authorities of the Peoples Republic of China (PRC). In addition, Ashmore Luxembourg R-QFII UCITS has been authorised by the CSSF to invest, subject to final approval by the PRC authorities, directly up to 100% of its net assets in debt instruments traded on the China Interbank Bonds Market (the CIBM), which is unprecedented.
This is an important milestone for the Luxembourg financial centre. Indeed, it confirms the possibility for managers based in R-QFII centres other than Hong Kong, such as London, Singapore or Paris, to use their R-QFII license and quotas with existing or newly created Luxembourg UCITS platforms. It also confirms that Luxembourg UCITS may invest up to 100% into debt instruments dealt in on the CIBM, which was recently recognised by the CSSF.