RQFII regulation change set to unlock unused quotas

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By Carrie Hong
12 Jun 2014

China’s State Administration of Foreign Exchange (Safe) is planning to make the Renminbi Qualified Foreign Institutional Investor (RQFII) scheme more flexible by allowing institutions to allocate their quota to any of their own RQFII products, instead of having to apply for product-based approval on a case by case basis, two RQFII fund managers have told GlobalRMB.

Market participants see the move as a further liberalisation of the RQFII scheme, designed to make it more efficient. After the change, RQFII quotas will be granted on a company-wide basis, meaning that the institution can use the entire approved quota on any of its products ...

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