SAFE had approved 21 RQFIIs by September 30. The A-share market is a major source of income for RQFIIs. By November 5, the CSOP A50 ETF had issued 1.05 billion fund units, with a market value of 7.8 billion yuan ($1.24 billion). The ChinaAMC CSI 300 Index ETF issued 221 million fund units, with a market value of 5.09 billion yuan ($809.22 million). The EFUND CSI100 ETF issued 116 million fund units, at a market value of 2.57 billion yuan ($408.59 million). The HGI MSCI CN A issued 244 million units, at a value of 1.94 billion yuan ($308.43 million). Therefore, since July 17, there have been 18 billion yuan ($2.86 billion) of offshore renminbi flowing into the A-share market via the RQFII.
The RQFII funds are performing well in terms of investment returns. Open market figures show that all the RQFIIs are making money, with net value growing between 0.17 percent and 3.76 percent. The top three return makers are the EFUND CSI100 ETF, the CSOP A50 ETF and the ChinaAMC CSI 300 Index ETF.
Due to their stable performance and high market demand, many RQFIIs are pressuring Hong Kong's financial authorities to appeal to expand RQFII quotas. According to a report by Hong Kong Phoenix TV, Hong Kong financial authorities also think present RQFII should be further revised.
At present, only fund management companies and insurance companies are qualified for the RQFII, and there are still limits on the investment proportion of stocks. Moreover, the 70-billion-yuan quota was too small compared with the huge offshore renminbi reserves in Hong Kong.
Therefore Hong Kong's financial officials had to seek help from the CSRC, requesting to increase the RQFII threshold.
Landmark building should respect the public's feeling
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