Business

China may raise ceiling on foreign capital market investors

November 21, 2012

Currently, an overseas institution is allowed to invest up to RM3.06 billion under the Qualified Foreign Institutional Investor programme. ― Reuters picCurrently, 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

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