PBoC to give QDII a boost, but funds might still prefer arb trade
The People’s Bank of China (PBoC) this week said it would expand the scope and the size of its Qualified Domestic Institutional Investors (QDII) and Qualified Foreign Institutional Investors (QFII) schemes, as it pushes towards capital account convertibility. Market participants reckon the changes could help lift sluggish activity, but it might not be enough to reduce the attractions of a QDII/RQFII arbitrage trade that has become popular.
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