CSRC takes steps to stimulate more QFII interest
08 October 2012
News, Asia, China, Global
By Hui Ching-hoo
The China Securities Regulatory Commission (CSRC) is to lay down guidelines with regard to the taxation and the easing of restrictions on the cross-border fund flows of qualified foreign institutional investor (QFII) products, according to a report from the China Securities Journal on Monday (October 8).
The initiatives are aimed at luring more foreign institutional investors to the Mainland’s capital markets. This follows on from Shanghai Stock Exchange, Shenzhen Stock Exchange, and China Financial Futures Exchange undertaking a series of road shows in North America, Europe, Korea, Japan and the Middle East to promote the RQFII programme and meet with over 200 foreign pension funds overseeing total AUM of somewhere close to US$25 trillion.
Many of these investors are looking to apply for QFII status or renew their existing quotas as the A-share market is looking more appealing in terms of market valuation.
Up to the end of September 28, the State Administration of Foreign Exchange had granted a total of $30.8 billion in QFII quotas to 157 foreign institutions.
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