The French Ministry of Finance has announced that Carmignac and BNP Paribas IP are the only two companies in France, and in the eurozone, to have been granted a RQFII licence (Renminbi Qualified Foreign Institutional Investor).
This licence, issued by the China Securities Regulatory Commission (CSRC) in a move to relax the country’s investment restrictions, gives access to A shares and local bonds denominated in RMB. The management company will subsequently be allocated a specific investment quota.
The Carmignac Group embarked on this endeavour in a bid to expand its investment universe to the Chinese domestic market where bond issuance amounts to USD 5,000 billion and the market capitalisation of the equity market is USD 4,000 billion, i.e. more than twice that of Chinese companies listed abroad, not to mention the many stocks that are not listed outside China at all. The Carmignac Group, which has long been active on emerging markets, will be able to tap into new investment opportunities linked to the growth of the Chinese economy.
According to Haiyan Li-Labbé, China analyst at Carmignac: “The reforms embarked upon by the Chinese government are a short-term hurdle but offer excellent long-term potential, which is where we want to be able to position ourselves effectively.”
These local equities and bonds will contribute to the performance of the Carmignac fund range.