QDLPs, launched by China’s State Administration of Foreign Exchange in 2013, allow qualified foreign asset managers to raise renminbi-denominated sums from qualified individual and institutional investors in mainland China.

HSBC Bank (China) is now distributing asset management plans to qualified high net worth investors in mainland China by using the qualified domestic limited partnership route.

The Hong Kong/London-listed group said it is the first international bank in mainland China to be distributing asset management plans investing in QDLP to qualified HNW investors.

The bank partnered with China International Fund Management Co to distribute the first asset management plans investing in QDLP, HSBC said in a statement yesterday. 

QDLPs, launched by China’s State Administration of Foreign Exchange in 2013, allow qualified foreign asset managers to raise renminbi-denominated sums from qualified individual and institutional investors in mainland China, for overseas investments within allocated quotas. Since the launch, China has granted a total of $5 billion in quotas.

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.

“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,” Richard Li, executive vice president and head of wealth and personal banking, HSBC China, said.

CIFM, meanwhile, is a joint venture of JP Morgan Asset Management in mainland China. CIFM was the first domestic fund manager to gain QDLP qualification.