Tag : rqfii

The country's latest plan to merge the two foreign investment schemes could raise protective instruments and demonstrates its commitment to opening up, say observers.

China has scrapped the quota of its two leading inbound investment programmes, but the move appears unlikely to give its onshore capital markets a shot in the arm.

The country's elimination of limits on qualified foreign institutional investor and RQFII investments is welcome and could help encourage better governance and transparency.

Foreign investors warmly received news of the planned merger, and anticipate that Beijing will make more efforts to broaden market access and enhance inbound investments.

Investors look set to use the Chinese cross-border scheme for some years yet. It still offers certain advantages over Stock Connect, including lower trading costs, say fund executives.

International fund houses have received further clarity on investments into China's interbank bond market, say sources, but central banks remain the biggest drivers of fast-rising inflows.

The Dutch asset manager will also add a third individual to its China equity research team. But it will need a new type of wholly foreign-owned entity if it is to run money onshore.

On Friday China's securities regulator removed the asset allocation limits under the two cross-border investment scheme, in a bid to boost foreign flows.

Country limits are still in place after the recent reform of the RQFII quota rules, says a source close to China's foreign exchange regulator.

Beijing has relaxed the renminbi qualified institutional investor (RQFII) quota rules, as it did for the QFII scheme in February. It is hoped the move will address capital-repatriation hurdles to MSCI inclusion.

Programmes including mutual recognition, Asean CIS, QFII, RQFII and Stock Connect appear to have fallen in favour, while ARFP, QDII, QDLP and QDIE have gained popularity.

The fund house aims to launch a Ucits China bond fund, set up a wholly foreign-owned entity in Shanghai, register for mainland bond market access and gain a QDLP licence. And that's not all.