China Opens the Door to Investment in Irish Funds Market

November 11, 2008
The Irish Financial Services Regulatory Authority recently signed a memorandum of understanding with its Chinese regulatory counterparts—the China Banking Regulatory Commission and China Securities Regulatory Commission—that will permit Chinese commercial banks, fund management companies, and other securities institutions in China’s Qualified Domestic Institutional Investor (“QDII”) program to invest domestic client assets in Irish-domiciled UCITS-compliant and non-UCITS investment products. This update examines the QDIl program and the new memorandum, which represents an important step toward liberalizing China’s foreign exchange restrictions and offers increased opportunities for Chinese investors to diversify their investments.