CHINA: CSRC to Relax China QFII Rules

Monday June 18 2012

It has been reported that the Chinese Securities Regulatory Commission (CSRC) is to revise regulations to relax China qualified foreign institutional investors (QFIIs) to accelerate the approval process, lower the requirement standards and expand the investment areas for overseas fund managers. It may also allow investors under the QFII scheme to invest in China`s inter-bank bond market and start the securities margin trading and China short-selling business.

Earlier this year, the CSRC expanded the total QFII quota from $30 billion to $80 billion.

As QFII licenses are still limited, many foreign institutional investors reportedly expect Chinese authorities to continually expand the quota.

The regulator also vowed to develop the wealth management sector and promote the business development of fund management companies in China to allocate more funds into the real economy such as manufacturing and support economic growth.

This information will be updated as more details become available