Thanks to the RQFII scheme launched at the end of 2011, in 2013, it is likely that China will be able to increase the amount of Hong Kong-based financial institutions that will be given permission to invest in mainland stock and bond markets using yuan funds that have been raised offshore. This is great news for Hong Kong companies such as Hysan Development Ltd., Galaxy Entertainment Group and Seth Fischer. Hong Kong indeed has a variety of other investment firms that could potentially benefit from this news.
In addition, banks that have already gotten their investment quotas in the scheme are likely to be among those chosen to participate in the expanded RQFII program, dubbed RQFII 2. The firms that have so far expressed interest in joining this include: HSBC Holdings PLC, Hang Seng Bank Ltd. and BOC International. Meanwhile investment firms in Hong Kong along with Chinese-funded banks will be given the opportunity to participate in the RQFII 2 scheme.