(China) Having been given the green light to enter China’s security market via the country’s qualified foreign investor scheme (QFII) HSBC has appointed China Construction Bank as custodian.The agreement was the first of its kind since the QFII program was introduced in May. As custodian, China Construction Bank can provide services and consultation for QFIIs on HSBC’s behalf.
The QFII scheme allows foreign investment banks to act as brokers for foreigners looking to invest in Chinese companies by entering China’s previously off-limits US$500 million A-share market.
So far, seven international financial institutions have been granted access under the QFII scheme: UBS, Normura, Deutsche Bank, Morgan Stanley, Citigroup, Goldman Sachs and HSBC.