China is likely to triple the quota for overseas institutions from US$10 billion to US$30 billion by the end of this year, the nation's securities regulator said.
China Securities Regulatory Commission (CSRC) has pledged to expand the current QFII (Qualified Foreign Institutional Investors) quota of US$10 billion, and following discussions with related parties, the quota will probably be tripled, said Shang Fulin, chairman of CSRC, when answering press questions at the seminar of central financial system delegation of the 17th National Congress of the Communist Party of China.
According to Xinhuanet, China and the US reached a consensus on the US$30 billion QFII quota in the second round of China-US Strategic Economic Dialogue. Sources from inside the sector believed the influx of foreign funds will benefit the current investor structure, and upgrade domestic investing philosophy and management pattern.
As of the end of 2006, some 52 foreign financial institutions are holding 97.1 billion yuan stocks in Chinese A-share market.
(Chinadaily.com.cn October 17, 2007)
