China fails to attract foreign investors as US trade dispute continues to hit stocks, yuan
Just one company raises its quota under the qualified foreign institutional investor scheme
The Chinese government managed to persuade just one of its 287 “qualified” foreign institutional investors to put more money into the country’s stock market last month, according to figures released by the foreign exchange regulator.
South Korea’s KB Asset Management Co added US$1 billion to its quota under the qualified foreign institutional investor scheme, the State Administration of Foreign Exchange (SAFE) said on Friday.
The remaining 286 firms, which include Goldman Sachs, JPMorgan, HSBC and UBS, left their positions unaltered, and no new companies joined the scheme, the agency said.
The extra funds from KB Asset took the total quota allocated under the scheme to US$100.46 billion.
China’s central bank and the SAFE amended the rules for the QFII scheme – which provides a way for foreign institutional investors to trade in Chinese mainland-listed stocks and bonds – just two weeks ago in a bid to attract more foreign funds into the country.