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China relaxes QFII quota for transfers between investment products

[SHANGHAI] China has relaxed rules on how foreign investors can use their quotas for investing in its domestic capital markets, making it easier to transfer funds between products, the country's foreign exchange regulator said.

The country's dollar-denominated Qualified Foreign Institutional Investor (QFII) programme was created to allow foreigners access to China's capital markets.

Qualified investors can now apply for either an open-end fund quota, or other product or capital quota, according to guidelines published on the State Administration of Foreign Exchange website on Monday. Both new quota types ease the transfer of funds between products.

The outstanding amount of China's QFII programme rose to US$79.10 billion as of Nov. 27, from US$78.97 billion at the end of October.

REUTERS