Chinese investors can now invest in Irish-domiciled funds, opening the floodgates to one of the world's largest pools of private capital, according to the Irish Funds Industry Association (IFIA).
Following increasing Asian demand for European-domiciled funds, the Irish financial regulator IFSRA has signed a memorandum of understanding with the China Securities Regulatory Commission (CSRC) and China Banking Regulatory Commission (CBRC).
It will enable Chinese investors to use Irish-domiciled Ucits-compliant and non-Ucits investment vehicles for the first time through the Qualified Domestic Institutional Investor (QDII) regime.
Gary Palmer, chief executive of the IFIA, said the move will make Ireland more appealing to investment managers who are already attracted by its open, transparent and regulated investment environment, strong emphasis on investor protection and home-based tax structure.
“Economic and market uncertainty has further strengthened investor appreciation for regulated and listed funds,” he said. “Ireland, with an acknowledged regulatory environment, is ideally positioned to address this industry need.
“This very positive and welcome development will be of particular benefit and provides a significant opportunity for the manufacturers and promoters of Irish investment funds,” he added.
Despite the turbulent market conditions, the Irish fund industry has grown, with 350 asset management firms using the country to domicile and distribute their funds. Ireland now services over $2trn of funds. Almost 700 new funds were established in the country in 2007, 17% more than the previous year.
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