Beijing considers raising quota for overseas investments
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The country's foreign exchange authority will consider increasing the quota under the qualified domestic institutional investor (QDII) scheme to allow the flow of more investments overseas.
The State Administration of Foreign Exchange (SAFE) would grant more QDII quotas to banks, insurers, brokerages and fund houses 'at an appropriate time', Xinhua said, citing deputy administrator Li Dongrong.
At the launch of the QDII scheme, domestic banks, brokerages and fund management firms could invest only in fixed-income and money markets. Recently, they were allowed to buy shares in overseas markets.
Mr Li said authorities were studying new rules to allow domestic insurers to buy overseas shares shortly.
SAFE has so far granted US$20.5 billion of QDII quotas. Banks got US$14.8 billion; insurers, US$5.2 billion; and a mutual fund company, US$500 million.