PBoC chairman requests enlargement of QDII, QFII schemes

27 November 2013   Category: News, Asia, China, Global   By Asia Asset Management

People’s Bank of China’s (PBoC’s) chairman, Zhou Xiaochuan, has asserted that the Chinese government should further enlarge the capacities of Qualified Domestic Institutional Investor (QDII) and Qualified Foreign Institutional Investor (QFII) pilot schemes by raising the size of their investment quotas, according to a report from China Securities Journal.  

Speaking at the Sino-French Financial Forum on November 26, Mr. Zhou said that the application requirements for QDII and QFII quotas should be removed when “the condition matures to an appropriate extent,” though he didn’t elaborate on the exact circumstances.

He notes that the initiative is helping create a liquidated foreign capital and fixed income system under a comprehensive and prudential management framework.

According to statistics from the State Administration of Foreign Exchange (Safe), the Chinese regulator had granted a total of US$48.5 billion in QFII quotas and US$81.1 billion in QDII quotas as of the end of October.

Mr. Zhou added that Beijing will continue streamlining the administrative approval process relating to foreign exchange currency controls. In addition, he said the country’s finance industry will further open up to foreign players, and more privately-owned enterprises will be allowed to establish small and mid-sized financial entities.