China central bank outlines rules on investment quotas under RQFII

[BEIJING] China's central bank on Monday outlined rules on investment quotas under the Renminbi Qualified Foreign Institutional Investor (RQFII) programme.

RQFII investors seeking investment quotas will be given quotas no greater than a certain proportion of the asset's size, if they qualify for the scheme, the People's Bank of China said in a notice on its website.

If the desired investment quota surpasses the base quota, investors will need to gain approval from the State Administration of Foreign Exchange (SAFE).

The rules were jointly issued with SAFE.

The RQFII programme, set up in 2011, allows financial institutions to use offshore yuan to buy securities in mainland China, including stocks, bonds and money market investments.

REUTERS