APD | China scraps investment quota restrictions for QFII, RQFII

BEIJING, Sept. 10 (APD) - China said on Tuesday that it has decided to remove the quota restrictions for the Qualified Foreign Institutional Investors (QFII) and Renminbi Qualified Foreign Institutional Investors (RQFII).

The State Administration of Foreign Exchange (SAFE) said over 400 institutional investors from 31 countries and regions have invested in China's financial market through the channels of the QFII system, introduced in 2002 and RQFII system, introduced in 2011.

With the new move to further open up the Chinese financial market, qualified foreign institutional investors under the two programs only need to register to remit funds independently to carry out securities investment.

After the lifting of the quota restrictions, cross-border investment has been further facilitated, which is expected to bring more long-term overseas capital, according to the SAFE.

Analysts said the move is expected attract more overseas funds to the Chinese stock market, hailing the measure as positive either in terms of increasing liquidity or further establishing the value investing concept.

(ASIA PACIFIC DAILY)