Foreign inflows forecast as China unveils QFII flexibility

China's foreign exchange regulator has taken a big step towards harmonising its two primary foreign investor schemes, introducing flexibility in quotas that will likely drive overseas firms to raise their onshore allocations. Late on Monday (December 7) the State Administration of Foreign Exchange (Safe) announced that qualified foreign institutional investors (QFIIs) would be allowed to share previously alloated RMB quota across existing open-ended mutual funds and to re-allocate…