The signing of Declaration of Intent for a Free Trade Agreement between Chinese President Xi Jinping and Prime Minister Tony Abbott constructs the framework...

The signing of Declaration of Intent for a Free Trade Agreement between Chinese President Xi Jinping and Prime Minister Tony Abbott constructs the framework Australia requires to augment cross border linkages with China and provides a new right of entry for Australian fund managers in the region. Only 12 countries have been permitted an RQFII quota and in the Asian region Australia is only the fourth country to be recognised. China revealed this week it will provide a 50 billion yuan (AUD$9.4 billion) quota to Australia under the RQFII program, which will allow Australian fund managers to directly secure bonds and equities on securities exchanges in Shanghai and Shenzhen in China's mainland. China is actively trying to evolve the Shanghai system and these developments are positive steps in the right direction of trying to internationalise their markets. China is thinking longer term, about the next 10 to 30 years and this presents an exciting opportunity for international investors.