Regulator triples QFII ceiling to US$30b

PUBLISHED : Monday, 10 December, 2007, 12:00am
UPDATED : Monday, 10 December, 2007, 12:00am

The mainland will triple the amount of money that qualified overseas institutions are allowed to invest in yuan-denominated stocks and bonds to US$30 billion, said the State Administration of Foreign Exchange yesterday.

The move has come to 'further open China's capital market and encourage qualified long and medium-term funds to be invested in the country', its statement said.

Guo Shiping, director of the international finance research institute of Shenzhen University, said that the rise would help 'protect the A-share market from turning from bull to bear' while stabilising the confidence of investors.

Felix Man Kam-fai, director of Hantec Futures, said that the move would make the market more vibrant with the increasing amount of new money flowing into it.