Lehman, Lee & Xu - China Capital Markets in the news

The China Law News keeps you on top of business, economic and political events in the China.
Blawg | Newsletter Archive | |

In the News

Further easing in QFII to attract investment

SECURITIES regulators are considering speeding up Qualified Foreign Institutional Investor approvals and facilitating the operation of the QFII program to attract more long-term overseas investment.

Authorities have hastened QFII approvals and lowered the QFII threshold since the beginning of this year to support the development of the domestic capital market, an official from the China Securities Regulatory Commission said yesterday.

The official said China will also expand further the Renminbi Qualified Foreign Institutional Investor program, raise the RQFII investment quota and loosen curbs to allow more institutions to apply for exchange-traded fund products.

Started in December 2011, the RQFII program now allows 70 billion yuan (US$11 billion) in ETFs raised offshore to be invested in the domestic capital market.

The QFII program allows overseas brokerages, fund houses and trust firms to invest in the domestic capital markets.

China granted QFII licenses to 57 new foreign investors this year, bringing the total to 192 since the program started in 2002. Eighty percent of the 192 QFIIs are long-term investors, including asset management companies, insurers and pension funds, according to official data.

China has moved to attract more long-term funds. In April, the CSRC raised the investment ceiling for QFIIs to US$80 billion from US$30 billion.

In July, China eased its investment controls on QFIIs, allowing them to enter the interbank bond market.

Source: http://www.shanghaidaily.com/nsp/Business/2012/11/08/Further%2Beasing%2Bin%2BQFII%2Bto%2Battract%2Binvestment/

Edward Lehman 雷曼法学博士
Managing Director 董事长

LEHMAN, LEE & XU China Lawyers

Lehman, Lee & Xu is a top-tier Chinese law firm specializing in corporate, commercial, intellectual property, and labor and employment matters. For further information on any issue discussed in this edition of China Capital Markets In The News or for all other enquiries, please e-mail us at mail@lehmanlaw.com or visit our website at www.lehmanlaw.com.

© Lehman, Lee & Xu 2012.
This document has been created for educational purposes for clients, potential clients and referrers of services to Lehman, Lee & Xu, and to alert readers to the services provided by Lehman, Lee & Xu. It is not intended to serve as definitive professional or legal advice, and should not be relied upon as such. Lehman, Lee & Xu does not endorse any personal opinions which may be contained herein.
If you would like us to send you new issues by e-mail each month, please click here to subscribe. There is no charge for this service. If not, please click here to unsubscribe (Please provide the correct Email address which you received our message or forward the message which you received to us for further process).