JP Morgan Asset Management, an arm of US bank JP Morgan, has received permission from the Beijing city government to create a US$1bn RMB fund under the new Qualified Foreign Limited Partner program, according to people familiar with the deal, allowing the US firm to become the biggest foreign manager of a yuan-denominated fund to date.

As a QFLP license holder, JP Morgan Asset Management, which makes private-equity investments, can convert up to US$1bn in foreign investors' currency into yuan for private investment in and around Beijing. RMB funds refer to funds denominated in renminbi, the official name for China's currency, which is also known as the Chinese yuan. The US$1bn represents a third of the Beijing city government's QFLP quota of US$3bn.