BlackRock wins second RQFII licence

RenminbiChinese authorities have awarded BlackRock's UK subsidiary a renminbi qualified foreign institutional investor (RQFII) licence, the second the US-based firm has won.

The licence allows the London-based unit to invest in China's domestic capital markets in local currency, including the A-Share equity and onshore bond markets.

BlackRock's first RQFII licence was issued in March to its North Asia division, which received a 2 billion renminbi (€240 million) investment quota in June.

Thomas Fekete, head of the iShares product team EMEA at BlackRock, said the firm was “proud to be among the first asset managers in London to be able to offer direct access to Chinese investments”.

RQFII licences are issued by the China Securities Regulatory Commission. Once licensed, asset managers can apply for an investment quota from the State Administration of Foreign Exchange.

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