Managers face hurdles as RQFII scheme expands

While momentum is continuing for China’s RQFII scheme with the recent inclusion of Germany and the issuance of more licences, some feel the looming Stock Connect link and narrowing offshore/onshore bond yield spreads may reduce the scheme’s attractiveness. The Shanghai-Hong Kong Stock Connect scheme could tempt investors away from renminbi qualified foreign institutional investor (RQFII) funds, argued Ernest Yeung, managing director at the Hong Kong arm of Changsheng Fund Manageme…