The investment quota, amounting to RMB1 billion ($165 million), was given by the State Administration of Foreign Exchange. In a statement, JPMAM said it aims to launch an actively managed equity fund investing in China's RMB-denominated securities, subject to the approval of the Hong Kong Securities & Futures Commission. 

"Recent volatility in the China A-Share market has created investment opportunities for medium to longer term investors.  We continue to see more divergence in sector performance during the deleveraging, reform and transition process of the Chinese economy while the breadth of the onshore A-Share market provides a good platform to invest and benefit from this economic transformation," said Lilian Leung, fund manager of JPMAM's Greater China team. 

The asset manager was one of the first international asset management companies to receive the RQFII licence for the China Securities Regulatory Commission in November 2013. It was also one of the earliest to launch an SFC authorised retail fund in Hong Kong to invest directly in China A-Shares through the QFII investment programme in 2006.

JPMAM is the investment management arm of JP Morgan in Asia. As at 31 December 2013, the firm records some $90 billion in funds managed across the Asia-Pacific region.