Luxembourg authorised RQFII UCITS stimulates emulators
Deutsche Asset & Wealth Management (DeAWM) and Harvest Global Investments Limited launched the first UCITS-compliant direct replication of China A-shares in Europe on January 6, 2014.
The launch of this fund confirms Luxembourg’s leadership in enabling new and innovative products with market-leading potential. In November 2013, the Luxembourg regulator CSSF was the first European regulator to authorise an RQFII fund under the Undertakings for Collective Investment in Transferable Securities (UCITS) scheme.
The fund is calculated in renminbi (CNY). It reflects the performance of the CSI300 Index (Index) which itself reflects the performance of shares of 300 companies listed on the Shanghai Stock Exchange and the Shenzhen Stock Exchange (China A-shares).
Harvest has been granted an RQFII (Renminbi qualified foreign institutional investor) license by the China Securities Regulatory Commission (CSRC).
Luxembourg UCITS have a large market share of foreign funds distributed in a number of Asian and Latin American countries. For this reason, an increasing number of fund managers create UCITS for global distribution. The Luxembourg financial centre is the uncontested leader in this field. 68% of all UCITS registered in at least three countries (including home country) are domiciled in the Grand Duchy.
The RQFII was launched in 2011 by the People’s Republic of China. It is a scheme granted to Hong Kong and other foreign jurisdictions allowing the reinvestment of offshore RMB into the Mainland securities market.