According to the Central Bank of Ireland, the decision will support economic and financial links between China and Ireland, and represents improving cooperation between the jurisdictions.
Governor of the Bank of Ireland, Philip Lane, said: “Initiatives such as this further global economic integration and may therefore result in potential macroeconomic gains for the jurisdictions concerned.”
"Irish Funds, the representative body for the cross-border investment funds industry in Ireland, welcomed the announcement, saying it “recognises Ireland’s position as a leading cross-border funds centre”.
The announcement comes shortly after the central bank confirmed that it is accepting applications from Ireland-domiciled UCITS and alternative investment funds to invest in the Shenzhen-Hong Kong Stock Connect, which went live on 5 December.
Irish funds were granted access to the Hong Kong-Shanghai Stock Connect programme in 2015.
Pat Lardner, chief executive of Irish Funds, said: “We are delighted the RQFII quota has been granted—it is testament to the hard work of both the Chinese and Irish authorities and something we have been strong advocates for on behalf of our members.”
“We believe that multiple access points to the Chinese securities markets via RQFII and Stock Connect provide a range of options for the hundreds of investment managers who already use Ireland and the many more we believe will.”