China to extend RQFII scheme to London

Qualified institutional investors based in the city, the first after Hong Kong, will be allowed to invest up to 80 billion yuan on the mainland

PUBLISHED : Tuesday, 15 October, 2013, 3:20pm
UPDATED : Tuesday, 15 October, 2013, 3:21pm

China is set to grant London-based investors the right to use their yuan to buy up to 80 billion yuan (HK$101 billion) worth of mainland stocks, bonds and money market instruments, the Chinese and British governments said on Tuesday.

The approval for London’s right to join the renminbi qualified foreign institutional investor (RQFII) scheme is the first time the programme has expanded beyond Hong Kong.

In return, the British government has agreed to start talks to allow Chinese banks to set up wholesale units in Britain, the two governments said in a statement.