China is expected to further raise the investment quota under its Renminbi Qualified Foreign Institutional Investor (RQFII) program and allow more countries and regions to participate in the scheme, the China Securities Journal reported on Wednesday, citing an industry insider.
The scheme allows qualified foreign entities to invest renminbi in Chinese stocks, bonds and money market instruments.
China on Monday awarded Germany an RQFII quota of 80 billion yuan (US$13 billion) to invest in the country’s capital markets, becoming the fifth country to receive such quota. South Korea was also granted an 80 billion yuan quota earlier this month.
The State Administration of Foreign Exchange has also relaxed controls on quota allotments. Fund companies are allowed to allocate their RQFII quotas for different fund products. Previously, a single product is subject to a specific quota approved by SAFE.
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