CSRC to raise RQFII ceiling
12 November 2012
News, Asia, China
By Asia Asset Management
China Securities Regulatory Commission (CSRC) Chairman Guo Shuqing says the body is considering lifting the quota of the RMB Qualified Foreign Institutional Investor (RQFII) scheme from its current 70 billion yuan (US$11.11 billion) to 270 billion yuan, according to a report from Xinhua News Agency on Monday (November 12).
Mr. Guo pointed out that the CSRC implemented the second phase of the RQFII scheme in April when it approved a 50 billion yuan quota for the launch of RQFII ETF products. This, together with the initial quota of 20 billion, brought the total RQFII quota to 70 billion.
Mr. Guo said that capital inflow driven by RQFII and Qualified Foreign Institutional Investor (QFII) programmes has been picking up pace as more foreign institutions look to invest in mainland China.
Also, according to him, the regulator has raised the ceiling for the QFII scheme to US$80 billion. Mr. Guo said this could be expanded once the current quota is exhausted. The CSRC is planning to raise quotas for individual QFII institutions from the current US$1 billion to US$3 billion or even higher.
Mr. Guo added that the CSRC is still working on introducing an international board – an initiative unveiled in China’s 12th five year plan which enables overseas companies to directly go public in the A-share market.
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