China doubles foreign-investor cake
One of China’s main programs for foreign investments, QFII, just had its roof raised by $150 bn, in drive to further open the financial system.
Trade disputes between China and the US may trouble the financial markets. Yet, Chinese authorities keep stressing that they plan to continue opening the country’s financial system, writes Bloomberg News, as published by Treasury & Risk. Policymakers have been keen to show that the dispute with America will not disturb their effort.
First time in over five years
The Qualified Foreign Institutional Investor program, QFII, had its quota raised from $150 billion to $300 billion. It was announced Monday in a statement by the State Administration of Foreign Exchange (SAFE).
Last time the program was expanded was in July 2013, then from $80 billion.
The QFII program is described as one of the main channels for foreign investments into China, which is the world’s second-largest economy.