HONG KONG Dec 17 Japan's SBI Holdings
said a fund management company it owns with a
state-owned company in Shanghai has received approval to invest
offshore yuan in China under a programme to promote global use
of the Chinese currency.
In a filing on Monday with the Hong Kong stock exchange, SBI
said the venture is the second entity and the first non-Chinese
one to be approved under the Renminbi Qualified Foreign Limited
Partner programme (RQFLP), launched in October by the Shanghai
Municipal Office of Finance.
The first approved entity was a Hong Kong unit of Haitong
Securities Co and Bank of Shanghai, which plans to
raise up to $100 million.
SBI is gearing up to establish an industry fund with
Shanghai Yidian, a large state-owned company directly managed by
the Shanghai Municipal Government. Their fund will mainly target
the Chinese information technology industry, SBI said in its
The two companies will each commit 100 million yuan ($16.04
million) to the fund scheduled to be established in January, SBI
The RQFLP programme, an extension of Qualified Foreign
Limited Partner (QFLP) project, allows foreign investors to
invest offshore yuan into private equity funds and venture
capital funds in China.
Under the QFLP programme, foreign investors were only
allowed to invest in domestic funds using foreign-currency
capital and the conversion into yuan was permitted only at each
investment project payment stage with the exchange amount
restricted by a pre-approved size.
The RQFLP programme allows investors to directly invest in
funds using their own yuan positions or overseas yuan converted
from foreign currency.
($1 = 6.2293 yuan)
(Reporting by Michelle Chen; Editing by Richard Borsuk)