Arendt & Medernach is delighted to inform you that, further to discussions with the Luxembourg Commission de Surveillance du Secteur Financier (the “CSSF”) on behalf of a number of our clients, we have received the confirmation that the China Interbank Bond Market (the “CIBM”) may be regarded as a regulated market eligible for UCITS investments, subject to conditions. This means that, in addition to the China A-Shares and listed onshore RMB fixed income securities which were already eligible, UCITS having appointed a manager benefitting from QFII or R-QFII licenses and quotas issued by the Chinese authorities, may now also have a direct access to onshore RMB fixed income securities dealt on the CIBM to build or complement their portfolio. Conditions relate to the relevant experience of the QFII / RQFII manager in relation to securities dealt on the CIBM, the suitability of the risk management process, guarantees regarding the overall liquidity of the portfolio and the inclusion of additional disclosures and risk descriptions in the prospectus. Please refer to our note dated April 2014, in which we anticipated this development, for a more detailed description of the possibilities to implement PRC strategies in Luxembourg funds.