19 Sept 2019
China Streamlines Domestic Financial Market Access for Foreign Investors
In line with the central government’s commitment to expanding and opening up China’s financial markets, the State Administration of Foreign Exchange has announced plans to scrap the investment quota limits that applied under the terms of the Qualified Foreign Institutional Investor (QFII) and the RMB Qualified Foreign Institutional Investor (RQFII) programmes.
Since the 2002 implementation of QFII and the 2011 adoption of RQFII, they have been the channels of choice for more than 400 institutional investors from 31 countries and regions who have opted to invest in China’s financial markets. Henceforth, though, duly-qualified foreign institutional investors need only go through the statutory registration procedures for the independent remittance of funds in order to invest in securities. It is believed the change will make it easier for such investors to access China’s domestic financial market, while also ensuring the country’s bond and stock markets enjoy greater global recognition.
Source: State Administration of Foreign Exchange