Tuesday October 13 2009

News Source: Global Disclosures

Focus: Foreign Investment

Type: General

Country: China




Pursuant to Draft Rules published on 4th September 2009, the State Administration of Foreign Exchange (SAFE) has published final regulations relating to the China Qualified Foreign Institutional Investors` Regime.

The new rules streamline various procedures, specific highlights include:

  • QFII quotas increased from USD 800 Million to USD 1 Billion
  • Lock-up period for repatriation shortened from 1 year to 3 months for insurers, pension funds and mutual funds
  • Specific provisions to prohibit the resale of investment quotas

As of end of September there are 78 institutions with QFII status in China.