UOB Asset Management Ltd (UOBAM) today announced that it has been awarded a RMB1.2 billion RQFII (Renminbi Qualified Foreign Institutional Investor) quota from the State Administration of Foreign Exchange of China.

UOBAM will now be able to provide onshore Renminbi (RMB) solutions to its institutional and retail clients and will launch three China onshore RQFII funds in the region in the coming months. These three funds are a RMB Onshore Money Market Fund, a RMB Onshore Bond Fund and a RMB Onshore Equity Fund.

Mr Thio Boon Kiat, Managing Director and CEO, UOBAM said, “The RMB is becoming increasingly internationalised. By offering RMB-denominated onshore solutions to our clients, UOBAM will be able to offer investors direct access to mainland China’s onshore equity and fixed income markets. This will provide them with the opportunity to participate in China’s financial market and be a part of its growth.”

All three funds will be sub-managed by Ping An UOB Fund Management Company1 (Ping An UOB), UOBAM’s joint venture company that is based in China. “As one of the foreign asset management companies with a local presence in China, Ping An UOB will be able to utilise our in-depth knowledge and on-the-ground insights to provide quality advice to clients and manage their investments better”, Mr Thio said.

The new suite of funds will complement the existing RMB investment solutions that UOBAM provides, these include:

  • The United SSE 50 China ETF that was listed on the Singapore Exchange in 2009. This was the first China A-Shares Exchange-Traded Fund that provides investors with access to China’s popular A-Shares market.
  • The United Renminbi Bond Fund that was launched in 2011. UOBAM was one of the first asset managers to launch an offshore RMB bond fund in Singapore, providing retail investors access to the offshore RMB bond market as well as the dim sum bond market in Hong Kong.
  • Other China-related funds such as the United Greater China Fund and the United China-India Dynamic Growth Fund for investors who are interested in investing in China’s economic growth.