China allows more foreign investment into capital market

Quotas of 81.1 billion U.S. dollars had been awarded under the Qualified Foreign Institutional Investors (QFII) program by the end of May, the State Administration of Foreign Exchange (SAFE) announced on Tuesday.

It was a slight increase from 80.1 billion U.S. dollars recorded at the end of April.

As of the end of May, the outstanding quota under the RMB-denominated Qualified Foreign Institutional Investors (RQFII) program totalled 502 billion yuan (77.2 billion U.S. dollars).

The government introduced the QFII and RQFII programs in 2003 and 2011 respectively. They give foreign investors the right to move money into the capital account to encourage controllable flows.

(APD)