FIs invited to tap offshore yuan scheme

Singapore

THE Monetary Authority of Singapore has called for applications for China's renminbi qualified foreign institutional investor (RQFII) licence. Financial institutions that hold such a licence can offer yuan-denominated investment products and invest offshore yuan - the Chinese currency that is traded outside the country - in China's securities markets.

In a statement yesterday, MAS said that the applications are to be made to the China Securities Regulatory Commission through approved custodian banks. All financial institutions incorporated in Singapore and approved by the MAS to conduct fund management activities are eligible for the scheme.