China asset managers to lobby Beijing over competition in Hong Kong offshore yuan
Hong Kong-based fund managers form group to lobby Beijing in their offshore expansion
Mainland fund houses, which share a growing ambition to expand abroad, are co-operating in Hong Kong to form an industry association to lobby Beijing.
The first memorandum the new industry group sent to Beijing asked for help in winning more of the offshore yuan business in Hong Kong, amid increased competition from foreign companies.
Sources told the the Chinese Asset Management Association of Hong Kong was established in the middle of last month, shortly after the China Securities Regulatory Commission, the mainland's top securities watchdog, announced it would expand the renminbi qualified foreign institutional investor (RQFII) scheme to encompass additional players, possibly asset managers from Taiwan, Singapore and Britain.
The expansion of the RQFII programme, a key part of the offshore trading business of the yuan, reflects the mainland government's intention to further open its financial services sector to foreign players.
But the move has caused concern among some mainland financial institutions.
Many Hong Kong-based mainland fund managers saw the expansion of the programme as a threat to their businesses if more foreign money managers were allowed to sell RQFII funds, said the sources, who declined to be named because they were not authorised to speak to the media.
With the launch of the Chinese Asset Management Association of Hong Kong, mainland fund managers can lobby policymakers in Beijing, said the sources.
