Cancel the "Limit" for Foreign Institutional Investors,China's Open Financial Market Takes New Steps

Publisher:温越涵Date:2020-05-13

[Reuters, Beijing, May 7] The People ’s Bank of China released the Regulations on the Management of Domestic Securities and Futures Investment Funds of Foreign Institutional Investors on Thursday, saying that it will implement the cancellation of qualified foreign institutional investors (QFII) and RMB qualified foreign institutional investors (RQFII) Requirements for the management of domestic securities investment quotas, registration management of cross-border capital remittance and exchange of qualified investors. The regulations will come into effect on June 6.

 

The central bank also said that it will implement integrated management of local and foreign currencies, allowing qualified investors to independently choose the currency and timing of remitted funds. In addition, the central bank will strengthen post-event supervision. Improving the foreign exchange risk and investment risk management requirements for qualified investors' domestic securities investment.

 

[Reuters, Shanghai, May 7] Title: Beijing is Further Opening its Financial Markets While Relations with Washington are Tense


China rectified a new regulation on Thursday, removing the quota limits for foreign institutional investors in China ’s two investment channels, allowing QFII and RQFII to hold Chinese stocks and bonds in unlimited amounts.


According to the statement, the new rules will also simplify the remittance procedures for foreign institutional investors' domestic securities investment returns, thereby further facilitating the participation of foreign investors in China's financial market. The new regulations solicited public comments before they were issued, and will take effect on June 6.The content involves strict supervision of foreign investment in Chinese securities and futures.