Broadening offshore investment options for HNW investors
HSBC Bank (China) Limited (“HSBC China”) today launched the Qualified Domestic Limited Partnership (“QDLP”) scheme, becoming the first international bank in mainland China distributing asset management plans investing in QDLP to qualified high-net-worth (HNW) investors, facilitating their investments in offshore traditional and alternative
investments for portfolio diversification.
HSBC partnered with China International Fund Management Co (“CIFM”) to distribute the first asset management plans investing in QDLP. The QDLP pilot scheme was launched by China’s State Administration of Foreign Exchange (“SAFE”) in 2013, allowing qualified foreign asset managers to raise RMB from qualified individual and institutional investors in mainland China, for overseas investments within allocated quotas. Since launch, China has granted a total of USD5 billion in quotas.
Richard Li, Executive Vice President and Head of Wealth and Personal Banking, HSBC China, said, “As the leading international bank in mainland China, HSBC is actively participating in the opening of China’s financial markets and is investing to grow and lead in the emerging HNW space. We are committed to help clients capture wealth opportunities domestically and provide comprehensive offerings to meet their growing international investment needs. We are excited to join up with CIFM, our long-term partner, to distribute asset management plans investing in QDLP to offer more overseas investment asset options to our Chinese HNW clients. This new scheme will help clients diversify their investments and leverage overseas opportunities to mitigate risks in their overall portfolio and further grow their wealth, especially amid uncertainty in the global markets.”
Eddy Wong, CEO of CIFM, said: “HSBC has been a long-term partner of J.P. Morgan Asset Management globally. Since 2012, CIFM has worked in close collaboration with HSBC China via Qualified Domestic Institutional Investors (QDII) programme, as well as the distribution of recognised Hong Kong funds and domestic funds. As a joint venture of J.P. Morgan Asset Management Ltd in mainland China, CIFM was the first domestic fund manager to gain QDLP qualification, and we are pleased to further deepen our partnership with HSBC China by offering QDLP to their HNW clients.”
Unlike QDII, QDLP can direct Chinese domestic investors’ funds to overseas markets and allow investments in alternative assets, including hedge funds, private equity funds, and Real Estate Investment Trusts (REITs) funds.