Beijing/New Delhi, Sep 10 (IANS) To deepen the domestic financial markets, China’s foreign exchange regulator has abolished the investment limits for Qualified Foreign Institutional Investors (QFII) and Renminbi Qualified Foreign Institutional Investors (RQFII).
The State Administration of Foreign Exchange said the abolition of the investment quota restriction is a major reform that will deepen the financial market.
Addressing a press conference, Wang Chunying, spokeswoman and Chief Economist of the State Administration of Foreign Exchange, said: “The abolition of the investment quota restriction for qualified foreign investors is a major reform of the State Administration of Foreign Exchange to deepen the reform and opening up of the financial market, and serve the new pattern of comprehensive opening up, as well as a reform measure to further meet the investment needs of foreign investors in China’s financial market.”
According to the regulator, the qualified foreign investor scheme is one of the main channels for foreign investors to invest in domestic financial markets, an important institutional arrangement to enhance the convertibility of RMB under capital account
Since the launch of QFII in 2002 and RQFII in 2011, more than 400 institutional investors from 31 countries and regions around the world have invested in China’s financial markets through these channels.
“Looking forward, the State Administration of Foreign Exchange will continue to deepen the reform of foreign exchange administration, take effective measures to expand opening up, support foreign investors to invest in domestic financial markets, and enhance the facilitation ofcross-border investment and financing,” the regulator said on its website.
“At the same time, the SAFE will adapt to the opening up, effectively prevent the risk of cross-border capital flows, and safeguard the national economic and financial security.”