UBS terminates QFII rental facility

UBS has terminated the facility through which it allowed other investment companies access to a certain level of its qualified foreign institutional investors (QFII) quota in exchange for a fee, reported the Financial Times. The facility has been shut down since November following new regulations from Beijing banning the "transfer or sale" of QFII quotas. While other investment banks have interpreted the new law differently and continue to offer similar QFII rental facilities for their clients, UBS is currently attempting to add another US$200 million to its current US$800 million quota – the largest amount granted to any of the current 86 QFIIs. Nicole Yuen, head of UBS China equities, said, "We want to be cleaner than clean, on our best behavior."