19 August 2019

Shanghai bourse lifts qualified foreign investor cap, paper says

The Shanghai Stock Exchange has raised the cap on foreign shareholding under the qualified foreign institutional investor and renminbi qualified foreign institutional investor schemes, China Securities Journal reported Thursday. Foreigners as a whole are now allowed to invest up to 30 percent in both schemes, up from 20 percent. The limit for individual investors is unchanged, the report said. Also, foreign investors are allowed to invest in a wider range of securities including preferred stocks, financial bonds and asset-backed securities as well as engage in pre-issuance trading of treasury bonds. There is no limit on strategic investment in listed companies. In addition, the alarm value for foreign shareholding has been raised to 26 percent from 16 percent, the report said.

– Contact HKEJ at [email protected]



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