23 September 2018

QFII quota seen doubled to US$160 bln in 5 yrs, consultancy says

China may see the investment quota for the qualified foreign institutional investor (QFII) scheme doubled to more than US$160 billion from the current US$80 billion in five years from now, William Kwok, chief executive of consultancy firm ChinaQFII Co. Ltd., said on Monday.

The quota that allows foreign investors to buy onshore securities will rise from the current 1.5 percent of Chinese market capitalization to 10 percent by then. The ratio is currently too low compared to regional peers such as Taiwan and South Korea where foreign investors are granted quotas that represent 20-25 percent of market capitalization, Kwok said.

Financials, consumer discretionary and industrials are the top three preferred sectors of QFIIs, accounting for 30 percent, 16 percent and 12 percent of their portfolios, respectively, Kwok said.

–Contact HKEJ at [email protected]



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