China to relax rules on foreign investment under RQFII - Xinhua
February 24, 2013 8:49 PM EST
Under the revised rules, Renminbi Qualified Foreign Institutional Investors (RQFII) will no longer be required to put at least 80 percent of their funds into the domestic fixed income market, Xinhua said, citing market regulator the China Securities Regulatory Commission.
"It means there will be more funds entering the (onshore)stock market," Xinhua said, adding that the market regulator has already finished modifying the rule.
The new rule, which will be implemented soon, will allow more institutional investors to join the scheme, which is currently limited to securities brokerages and investment funds, Xinhua said, without naming a date.
China introduced the RQFII scheme with an initial quota of 20 billion yuan ($3.21 billion) in late 2011, with each firm allowed to put no more than 20 percent in the onshore stock market and the remainder invested in fixed income.
The quota was raised by 50 billion yuan last April, with the entire amount to be invested in the stock market through exchange-traded funds (ETFs).
Guo Shuqing, the head of the China Securities Regulatory Commission (CSRC), said in late 2012 that the RQFII quota would be raised by a further 200 billion yuan, although he gave no specifics on how the quota would be allocated or what products could be purchased.
(Reporting by Xiaoyi Shao and Kevin Yao; Editing by Daniel Magnowski)
Most Popular Slideshows
- 2014 MLB World Series Game 1: San Francisco Giants 7, Kansas City Royals 1 [PHOTOS]
- 2014 MLB World Series - Game 2: Kansas City Royals 7, San Francisco Giants 2 [PHOTOS]
- NFL Thursday Recap - Denver Broncos 35, San Diego Chargers 21: Peyton Manning Has 3 TDs In Easy Win [PHOTOS]
- 2014 MLB World Series Game 3: Kansas City Royals 3, San Francisco Giants 2 [PHOTOS]
Join the Conversation
- Xiaomi Redmi 1S vs. Sharp Aquos Crystal – Specifications, Features And Price Showdown
- Verizon Motorola Droid Turbo Leaked Live Images Surfaces, Scheduled To Get Unveiled On Oct 28
- Update HTC One M7 with LG G2 with Android 4.4.2 as Sprint OTA: Fixes and Installation
- U.S. Targets Buyers of ISIS Oil, Threatens Sanctions
- ISIS Syria Airstrike Bombing Has Killed 550 People, Civilians Included
- Russia Blocking OSCE Monitoring Of Its Border With Ukraine
- Russia Shifts Blame On US For Ukraine Crisis, Putin Accuses West of 'Remaking World'