Ireland is considering applying for a licence to allow IFSC funds to invest in mainland China’s bond and equity markets.

As the state seeks to expand its offering to attract investors to Ireland, it is understood to be considering options to help funds invest in the Chinese market. In recent years a number of countries have gained access to the Chinese market through the Renminbi Qualified Foreign Institutional Investor (RQFII) scheme.

The initiative was introduced in 2011 and allows overseas financial institutions a quota to use offshore yuan to buy securities in mainland China, including stocks, bonds and money market investments.

The agenda for recent meetings of the cross-sector IFSC Funds Working Group, which was published in response to a parliamentary question, include references to “strategy for developing the Chinese market” and “RQFII quota”. The Department of Finance declined to comment when contacted last week.

China has given quota allocations to several countries, including the UK and France.

The programme was significantly expanded in June when the US was granted the largest quota to date at 250bn yuan ($38bn).

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