Ireland has been given access to invest billions in mainland China's markets

THE CENTRAL BANK has announced that Ireland has been granted access to invest up to 50 billion renminbi, or €6.8 billion, in mainland China.

The People’s Bank of China has given Ireland access to invest in Chinese capital markets using the local renminbi currency under the Renminbi Qualified Foreign Institutional Investor programme, or RQFII.

Launched in 2011, RQFII allows overseas investment managers to raise funds in their home country to invest directly in mainland Chinese markets using renminbi.

Investment managers based in Ireland will be able to apply to get a slice of the €6.8 billion quota by registering their interest with the relevant authorities in China.

Financial service providers here will also be able to offer the additional service to European markets.

Ireland is only the 17th jurisdiction to gain access to the programme. The UK, Hong Kong, Australia, Canada and the United States are among those that have already qualified for it.

Central Bank governor Philip Lane said the initiative “represents an important step in further strengthening bilateral financial cooperation” between the two countries.

Central Bank governor Philip Lane

“The fact the People’s Bank of China has generously granted Ireland this quota highlights the important role Ireland plays in international financial services,” Minister for Finance Michael Noonan said.

He said today’s announcement is a “key contributor” to the state’s International Financial Services Strategy 2020, a five-year plan to improve Ireland’s financial services sector and make it more attractive for foreign direct investment.

Minister of State for Financial Services Eoghan Murphy added that the agreement will “improve Ireland’s funds services offering” and said it is “important to raise our profile in Asia”.