Logo of Phnom Penh Post newspaper Phnom Penh Post - China forex regulator abandons quota limits

China forex regulator abandons quota limits

Content image - Phnom Penh Post
In this Nov 28, 2012 photo, a clerk counts US dollar bills at a bank of the Industrial and Commercial Bank of China in Huaibei, East China's Anhui province. CHINA DAILY/ANN

China forex regulator abandons quota limits

China's foreign exchange regulator has decided to cancel the quota limits for foreign investors accessing mainland capital markets, a move to further open up the country’s financial sector, said a statement on Tuesday.

The State Administration of Foreign Exchange (Safe) announced the removal of the ceiling, or the maximum investment amount, for foreign institutions investing in the onshore markets under two major schemes – the Qualified Foreign Institutional Investor (QFII) scheme and the RMB Qualified Foreign Institutional Investor (RQFII) scheme.

The State Council, the country’s cabinet, recently approved the measure. Since then, qualified foreign institutional investors can inject funds, without certain limitations of the amount, to the bond and stock markets, according to the statement on the Safe website.

The Safe is now applying to the State Council to cancel related administrative licensing, which is also one of the conditions that foreign investors are subject to under the two schemes, and the result will be announced after approval, it said.

The QFII and RQFII schemes, introduced in 2002 and 2011 respectively, were seen as the most significant policy during China’s opening up of its domestic capital markets. More than 400 institutional investors from 31 countries and regions have injected funds into the world’s second largest economy through the two schemes.

“It is a reform measure to further satisfy foreign investors’ demand on investing in China’s financial market,” said Safe spokeswoman Wang Chunying.

Meanwhile, the restriction on countries and regions as RQFII pilots has also been removed. “We welcome qualified institutions from all over the world to invest in the domestic securities using offshore renminbi,” said Wang.

Richard Pan, head of QFII investment at ChinaAMC, one of China’s largest mutual fund companies, said as the domestic financial sector is continually opening up, foreign investment may increase to 10 per cent of China’s A-share and bond markets in the next decade. CHINA DAILY

MOST VIEWED

  • Hun Sen asks Cambodians to believe in government

    Prime Minister Hun Sen on Monday asked citizens and investors to trust that the government will overcome the challenges brought about by Covid-19 and the loss of the EU’s Everything But Arms (EBA) scheme. Speaking to reporters at the Peace Palace in Phnom Penh,

  • Westerdam passenger ‘never had’ Covid-19

    The US Centres for Disease Control and Prevention (CDC) said the US citizen that allegedly tested positive in Malaysia after travelling on the Westerdam was never infected with Covid-19 in the first place. In an article published in the newspaper USA Today on Friday, CDC

  • ‘Ghost staff’ found, $1.7M returned to state coffers

    The Ministry of Civil Service said more than seven billion riel ($1.7 million) in salaries for civil servants was returned to the state last year after it discovered that the books had been cooked to pay ‘ghost officials’. This is despite claims by the Ministry of

  • Woman wanted for killing own son

    Police in Phnom Penh’s Meanchey district are on the lookout for a woman who allegedly hacked her son to death on Sunday in Stung Meanchey III commune. District police chief Meng Vimeandara identified the son as Chan Sokhom, 32. “The offender can’t escape forever.

  • H5N1 also poses deadly threat, ministry warns

    The Ministry of Health’s Communicable Disease Control (CDC) department has called on citizens to excise caution over H5N1 or bird flu that is spreading in the southern province of Vietnam. In a Facebook post, the department announced that it has made a series

  • Malaysia in turmoil

    Malaysian Prime Minister Dr Mahathir Mohamad has done it again. At the centre of two days of high drama and political manoeuvring, he has, wittingly or not, contributed to shaking Malaysia, and further causing its equities market to fall nearly three per cent. The drama