FOR PROFESSIONAL INVESTORS OR ADVISORS ONLY
biggest
GDP
in world
stock market
globally
$9.24 tn1
$3.7 tn
market cap2
onshore
bond market
worldwide
$5.4 tn3
Investment opportunities in China
FIXED INCOME
CURRENCY
China’s bond yield attractive relative
to other bond markets
Stable currency with a significant
positive yield
Onshore
RMB BONDS
Offshore
RMB BONDS
Onshore
REGULATED (CNY)
Offshore
USD BONDS
Deliverable offshore
CNH DELIVERABLE
FORWARDS
Offshore
RMB BONDS
EQUITY MARKET
SOURCES:
1- IMF, World Economic Outlook Database, October 2014
Key:
2 - World Federation of Exchange, October 2014
3 - Bank for International Settlements, March 2014
Three ways to access China’s
domestic market
Investor
scope
Minimum
investment
Participation
Liquidity
Total quota
(USD)
Allocated
quota (USD)
Equity
investment
Lock-up
QUALIFIED FOREIGN INSTITUTIONAL INVESTOR
Scheme to invest in China’s RMB capital market
Institutional investors
with clear entry criteria
150bn
USD 50m
54bn
Global
All equities and
exchange-traded bonds
Weekly repatriation (T+5)
3 months
RMB QUALIFIED INSTITUTIONAL INVESTOR
Scheme to enable offshore RMB deposits to invest in mainland securities markets
Institutional investors
with clear entry criteria
82bn
USD 30m
⁓ 80bn
Mostly HK, expanding
All publicly-traded
securities
Daily repatriation (T+1)
No lock up for
open-ended funds;
12 months for others
SHANGHAI - HK STOCK CONNECT
Scheme allowing investors from Hong Kong & Shanghai stockmarket to settle shares
in other markets, for the first time
Retail investors and
institutional investors
without additional entry
criteria
The northbound aggregate quota
is set at RMB 300 bn.
The southbound aggregate quota
is set at RMB 250 bn.
Northbound: none
Southbound: RMB 500k
⁓ 80bn
Hong Kong and
Mainland China
Selected A-share and
H-share stocks
T+1 Northbound,
T+0 Southbound
None
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