[SHANGHAI] Shanghai hopes to allow individuals to invest in overseas markets this year through a trial scheme to be launched in its free trade zone, a city government website said.
The new Qualified Domestic Individual Investor programme, or QDII2, is part of a package of 51 measures jointly proposed by the municipal government, the central bank and government regulators which would promote capital account yuan convertibility and international use of the yuan.
The website of the government of Shanghai's Pudong district quoted Zheng Yang, head of the city's office of financial services, as saying the overseas investment could be in property, foreign stocks, industry and other areas.
The long-expected QDII2 promises to give Chinese individuals greater options to diversify investments, but limiting the scheme to the Shanghai Free Trade Zone may check the number of people able to access the programme.
Individuals are now permitted to buy a maximum equivalent of US$50,000 of foreign currency, but Zheng said that was too little and the free trade zone would consider raising the limit.
The report said the zone was aiming to launch the QDII2 pilot this year.