China will continue to open up its capital market by expanding a mechanism for qualified foreign institutional investors, China Securities Journal reported Wednesday, citing unnamed sources. The government will increase quotas and widen the scope of the qualified foreign institutional investor (QFII) scheme and the renminbi qualified foreign institutional investor (RQFII) program. QFIIs hold less than 2 percent of China capital market compared with more than 20 percent in mature markets and other emerging markets. In March, the State Administration of Foreign Exchange approved quotas worth US$1.26 billion and 18.1 billion yuan (US$2.91 billion) for QFII and RQFII, bringing the total to US$53.58 billion and 200.5 billion yuan, respectively, as of the end of that month, the report said.
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