Ireland Granted Access to Invest in Chinese Securities
The People’s Bank of China and Central Bank of Ireland announced on Wednesday that Ireland has been granted access to invest in securities in China. The Department of Finance said that the Renminbi Qualified Foreign Institutional Investor quota for Ireland “represents a key milestone in the continued development of economic relations with China and Asia as a whole.”
The quota will allow Irish-domiciled financial institutions to invest in China’s domestic bond and equity markets using China’s own currency, the Renminbi. Irish financial service providers will now be able to offer this additional service to European markets.
“The fact the People’s Bank of China has generously granted Ireland this quota highlights the important role Ireland plays in international financial services,” Minister for Finance Michael Noonan said. “We are committed to growing real jobs in this important sector and this quota is a key contributor to ensuring the continued success of the IFS2020 Strategy.”
A quota of 50 billion Renminbi of investment has been granted. This is equivalent to approximately €6.8 billion that can be invested in Renminbi denominated securities under China’s Renminbi Qualified Foreign Institutional Investor (RQFII) programme.
Ireland now becomes only the 17th jurisdiction outside of China granted an RQFII quota since the programme was launched in 2011.
Minister of State for Financial Services Eoghan Murphy said: “This granting of this quota is an important step in building closer bilateral cooperation with China in financial services. It will improve Ireland’s funds services offering and our status as a major financial services centre. While given the uncertainty arising from the Brexit vote it has become more of an imperative for Ireland to continually improve the conditions to attract new investment and job creation in this sector.
“It is equally important to raise our profile in Asia. Next month I will follow-up on my recent travel to Singapore, Shanghai and Tokyo with engagements in Beijing and participation at the Asian Financial Forum in Hong Kong. While strengthening financial links with Asia will be a key theme at the government-hosted European Financial Forum on the 24th January 2017.”
