Skip to main content

【Financial Str. Release】Economic Watch: China expands QDII quotas as outbound investment demand grows

Abstract : China's foreign exchange regulator Wednesday night expanded quotas under an outbound investment scheme to meet the growing demand of domestic investors.

BEIJING, June 3 (Xinhua) — China’s foreign exchange regulator Wednesday night expanded quotas under an outbound investment scheme to meet the growing demand of domestic investors.

A total of 10.3 billion U.S. dollars in quotas was granted to 17 institutions under the Qualified Domestic Institutional Investor (QDII) program, a scheme for outbound investment, according to the State Administration of Foreign Exchange (SAFE).

Among these institutions were fund companies, securities firms, insurers, and banks, said the regulator, adding that the move brought China’s total QDII quota to 147.32 billion U.S. dollars.

The quotas approved Wednesday were the largest since the country implemented the QDII scheme in 2006.

Over the years, China has gradually normalized and accelerated the issuance of QDII quotas. Since September 2020, the SAFE has granted seven rounds of quotas to 173 institutions through the QDII scheme, official data showed.

Under the QDII program, the country’s cross-border capital flows have been maintained systematically, satisfying the rising demand for outbound investment at home, the SAFE said.

The faster pace of quota issuance could help diversify overseas asset allocations while building up the investment capabilities of domestic institutions, said Guan Tao, an economist with BOC International.

It also indicated that the authorities had adopted a combination of foreign exchange policies that aimed to increase the flexibility of exchange rates and expand the two-way opening up of the financial market in an orderly manner, Guan added.

Amid efforts to further open up the financial market, China last year scrapped quotas on the dollar-denominated qualified foreign institutional investor (QFII) scheme and its yuan-denominated sibling, RQFII. It thereby further streamlined the procedures for foreign institutional investors.

Looking forward, Guan expected the central bank and the SAFE to roll out more opening-up measures for stocks, bonds, foreign exchange markets, and other areas as the country deepens the high-level opening-up of capital accounts and financial markets. Enditem

About Xinhua Silk Road

Xinhua Silk Road (en.imsilkroad.com) is the Belt and Road Initiative (BRI) portal.China’s silk road economic belt and the 21st century maritime silk road website,includes BRI Policy, BRI Trade, BRI Investment, Belt and Road weekly, Know Belt and Road, and the integrated information services for the Belt and Road Initiative (BRI).

Source: 【Financial Str. Release】Economic Watch: China expands QDII quotas as outbound investment demand grows

Labels:

Comments

Post a Comment

Popular posts from this blog

Flower expo opens in Shanghai

Abstract : The 10th China Flower Expo opened in Shanghai on Friday, welcoming over 20,000 visitors on its first day. Photo taken on May 21, 2021 shows an exhibit displayed at the 10th China Flower Expo in Chongming District, east China’s Shanghai. The 10th China Flower Expo, which covers a total area of 589 hectares, kicked off here on Friday and is expected to conclude on July 2. (Xinhua/Ding Ting) SHANGHAI, May 21 (Xinhua) — The 10th China Flower Expo opened in Shanghai on Friday, welcoming over 20,000 visitors on its first day. The expo, held to showcase the development of China’s flower industry, will last until July 2. A total of 180 outdoor exhibition zones and 64 indoor areas have been set up at the expo park in the city’s Chongming District. The expo park opens from 9 a.m. to 9 p.m. every day, and night performances such as light shows, drone performances, and parades will be staged, weather permitting. Enditem About Xinhua Silk Road Xinhua Silk Road (en.imsilkroad.co
Post a Comment
Read more

Feature: How China-initiated development bank helps transform lives across Asia

Abstract : As there was no electricity supply in the remote Bangladeshi village of Padmo Para, Fatima Khatun used to light candles to do homework after dark. BEIJING, Jan. 29 (Xinhua) — As there was no electricity supply in the remote Bangladeshi village of Padmo Para, Fatima Khatun used to light candles to do homework after dark. “We did not score well in exams” as a result, she said. But today, a light bulb has lit up Khatun’s home, allowing her to read for hours at night. The Bangladeshi village gained access to electricity for the first time in 2018 under a project financed by the Asian Infrastructure Investment Bank (AIIB), a China-proposed multilateral financial institution. For the past five years since its inception, the Beijing-headquartered development bank has provided much-needed funding and resources to infrastructure projects across Asia. In Pakistan , before the completion of the M-4 National Motorway project, it took Sohail Iqbal nine to 10 hours to travel fro
Post a Comment
Read more

Auctioned transaction at Kunming flower market up 8 pct

Abstract : A total of 3.9 million stems of flowers were transacted Tuesday via the electronic auction services of the Kunming Dounan Flower Market, Asia's largest fresh cut flower trading market, up 8 percent from Monday. KUNMING, June 23 (Xinhua) — A total of 3.9 million stems of flowers were transacted Tuesday via the electronic auction services of the Kunming Dounan Flower Market, Asia’s largest fresh cut flower trading market, up 8 percent from Monday. The data were provided by the Kunming International Flora Auction Trading Center and the Dounan Flower Electronic Trade Center. As a barometer of China’s flower market, the Kunming-based market in southwest China’s Yunnan Province saw the trading volume of fresh cut flowers reach 9.23 billion stems in 2019. Enditem About Xinhua Silk Road Xinhua Silk Road (en.imsilkroad.com) is the Belt and Road Initiative (BRI) portal. China’s silk road economic belt and the 21st century maritime silk road website, include BRI Policy, BR
Post a Comment
Read more