HSBC Global Asset Management gets RQFII quota

Will invest it in the fixed income securities on the mainland.

The RQFII quota obtained by HSBC Global Asset Management in Hong Kong is worth US$130 million. The company will launch a corresponding product for both its retail and institutional clients in Hong Kong after getting regulatory approval.

The onshore Chinese fixed income market has been growing strongly since 2000. Total outstanding issue number increased from 107 to 3,705 at a CAGR of 32%.

Total outstanding amounts rose from RMB1,329.4 billion to RMB23,99 billion at a CAGR of 27% between 2000 and 2013.

The market is expected to further expand as local corporations in China continue to raise funds through bond issuance. The Chinese government's effort is promoting the debt capital markets as an alternative to bank finance.