China increases QFII investment quota

Now stands at US$150 billion.

The China Securities Regulatory Commission also said the pilot scheme of RMB Qualified Foreign Institutional Investors (RQFII) will expand to Singapore, London and other places after Hong Kong.

CSRC said the rise of the Qualified Foreign Institutional Investors (QFII) investment quota will attract more foreign investors and promote the reform and development of China's capital market. The QFII investment quota was raised to US$80 billion in April.

Latest statistics from the State Administration of Foreign Exchange (SAFE) shows it has granted US$6.02 billion of QFII quotas to 22 foreign institutional investors so far this year, bringing the total QFII quota up to US$43.5 billion with 229 overseas institutions granted licenses.

As for the expansion of the RQFII pilot scheme, its operations in Singapore and London will be applied in accordance with Hong Kong, said CSRC. CSRC has granted RQFII licenses to 37 institutions so far, with the total investment quota reaching US$17 billion.

China launched the RQFII scheme in December 2011 to allow a maximum of US$3.3 billion worth of exchange-traded funds raised offshore to be invested in the domestic capital market. The investment quota has been gradually increased to US$44 billion.