China’s CSRC mulls significant raise of QFII quota ceiling
22 November 2012
News, Asia, China, Global
By Hui Ching-hoo
The China Securities Regulatory Commission (CSRC) is reportedly considering raising the ceiling on qualified foreign institutional investor (QFII) quotas for individual foreign institutions to US$5 billion.
At present, a foreign firm with a QFII license can apply for a maximum quota of $1 billion to invest in the Mainland capital markets. Four existing QFII participants, the Hong Kong Monetary Authority (HKMA), the Government of Singapore Investment Corporation (GIC), Temasek Fullerton Alpha Investments, and Norges Bank, have already reached their respective QFII quota ceilings.
Citing local media, Global Times reported that Norges Bank and Qatar Holding LLC are seeking to extend the limit to $5 billion.
In a separate interview, BNY Mellon Asset Servicing Managing Director Rex Wong told Asia Asset Management that the Chinese government is pushing ahead with the QFII scheme because the country needs additional capital injections from other countries to buoy its economy.
More News >
Discuss: China’s CSRC mulls significant raise of QFII quota ceiling