CHINA: SAFE Announce Removal of QFII and RQFII Quota Restrictions

Wednesday September 11 2019

In order to implement major policy decision of the CPC Central Committee and the State Council on the opening up and further expansion of China’s financial market, the State Administration of Foreign Exchange (SAFE) has decided to cancel the investment quota limitation of qualified foreign institutional investors (QFII) and RMB qualified foreign institutional investors (RQFII).

The qualified foreign investors scheme is one of the most important schemes for the opening-up of China’s financial markets. Since the launch of QFII in 2002 and RQFII in 2011, more than 400 institutional investors from 31 countries and regions around the world have invested in China’s financial markets through these channels.

Over the years, the State Administration of Foreign Exchange has been adhering to the premise of effectively preventing risks, actively promoting the opening up of financial markets, and continuously deepening the reform of foreign exchange administration of qualified foreign investors scheme, which has abolished relevant exchange restrictions in 2018. The abolition of the investment quota for qualified foreign investors this time is another major reform measure taken by the State Administration of Foreign Exchange, in the field of foreign exchange administration of qualified foreign investors. In the future, foreign institutional investors with corresponding qualifications will only need to go through registration procedures, thus allowing them to remit funds independently whilst making securities investments in accordance with the regulations. Therefore, the convenience of foreign investors to participate in the domestic financial market will be greatly improved.

Click on the above link for further information.