The asset manager said it also has a similar license for its London division which is planning to launch RMB investment products for its European clients shortly.
The HSBC RQFII Chinese Fixed Income Fund launched in Hong Kong is available to both the retail and institutional clients in US dollar, RMB and Hong Kong dollar.
The minimum investment is $1,000, RMB10,000 or HK$10,000 for retail investors while the subscription fee is 3% of the offer price and the firm charges management fees of 1.1% per annum.
Pedro Bastos, chief executive, Hong Kong and regional head of Asia Pacific, HSBC Global Asset Management, said: “As a leader in the RMB business, we are pleased to be the first international asset manager to launch a RQFII product in Hong Kong.
“The ability to access the broader China onshore market further strengthens our leading position in RMB and allows us to connect our clients to one of the most important and fastest growing markets in the world.”
This new fund gives investors an option to tap into investment opportunities in China and builds out HSBC’s RMB fixed income product suite, which includes its offshore RMB bond strategy.
HSBC Global Asset Management said it established its investment capability in China in 1992 when it launched its Chinese equity fund, and was among the first to receive the license and quota under the qualified foreign institutional investor scheme launched in 2003. It received the RQFII quota in Hong Kong in 2013.
In 2011, it launched HSBC RMB Bond Fund that invests in offshore RMB bonds and as of 31 May has assets worth RMB5.4bn ($0.87bn, £0.51bn)
Cecilia Chan, chief investment officer of fixed income, Asia Pacific is the fund manager for the new fund.
Recently, the fund house launched a low volatility equity product for investors in Hong Kong and Singapore.
Many asset managers are seeking to tap the demand for RMB products by launching new funds or introducing new share classes following the Chinese government’s measures to take the RQFII pilot programme out of Hong Kong to countries such as Singapore, London with Germany and South Korea being the latest to receive RQFII quotas.
Early July, Nikko Asset Management announced its plans to launch a China onshore bond fund.
BlackRock was recently granted its second RQFII license for its UK subsidiary in June after it received similar accord for its North Asia subsidiary earlier in April. Fullerton and UK-based Ashmore have also secured such licenses.
