China may raise ceiling on foreign capital market investors
Currently, an overseas institution is allowed to invest up to RM3.06 billion under the Qualified Foreign Institutional Investor programme. ― Reuters pic
SHANGHAI, Nov 21 ― China is studying plans to lift the investment ceiling for long-term investors in the country’s capital markets, the official China Securities Journal reported today, citing unidentified sources.
Currently, an overseas institution is allowed to invest up to US$1 billion (RM3.06 billion) under the Qualified Foreign Institutional Investor (QFII) programme ― foreigners’ main gateway to China’s capital markets.
Relevant government bodies are currently studying plans to lift that ceiling for select investors in a bid to attract long-term capital from overseas and help stabilize the domestic capital market, the newspaper said.
China has rolled out a series of measures this year to expand the QFII scheme, including lifting the ceiling of combined QFII quotas by US$50 billion to US$80 billon, and lowering the threshold for QFII applicants.
Last month, China granted a record US$2.8 billion in quotas to overseas investors including the Government of Singapore Investment Corp GIC.UL, Barclays Bank PLC and JPMorgan Chase & Co. ― Reuters
