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Beijing accelerates overseas quota issuance to widen investor access to global markets

Move to expand QDII quotas signals a deeper opening of China’s markets and growing appetite for global assets

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A large screen shows stock exchange and economy data in Shanghai. Photo: EPA
Mia Nurmamatin Hong KongandFrank Chenin Shanghai

China is preparing to expand domestic investors’ access to offshore assets by raising quotas for institutional overseas securities investments.

The State Administration of Foreign Exchange (SAFE) said on Friday it had accelerated preparations to issue a new round of quotas under the Qualified Domestic Institutional Investor (QDII) scheme, which allows approved institutions to invest overseas within regulator-set limits.

It did not reveal more details, including the size of the fresh quotas.

The regulator said it would continue to issue quotas on a regular basis as part of efforts to steadily advance the two-way opening of China’s financial markets.

“We are currently speeding up preparations and aim to issue a new round of QDII quotas as soon as possible, so as to better support and meet the legitimate and compliant overseas securities investment needs of domestic residents,” said Xiao Sheng, director general of SAFE’s capital account management department, at a news conference hosted by the State Council Information Office on Friday.

SAFE pledged to give greater support to market institutions with “strong investment management capabilities, well-recognised products and robust compliance and risk-management standards” in playing a bigger role in the QDII programme.

The regulator said it would further prioritise public fund products under the scheme to improve accessibility for retail investors.

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