Beijing seen to relax rules on trading by foreign investors
But it does not entail a net increase in size of foreign investments allowed
Hong Kong
CHINA will relax rules covering trading by foreign investors on its Shanghai-based interbank market, including making it simpler to obtain quotas for such investments, two sources with direct knowledge of the matter told Reuters on Wednesday.
By easing the path to the most liquid parts of the interbank market and simultaneously reducing paperwork, the move marks an advance for foreign institutional funds in terms of access. But it does not entail a net increase in the size of foreign investments allowed in the market, which remain negligible compared to domestic capital, meaning it seems unlikely to significantly impact domestic rates or liquidity.
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