China lowers the threshold for overseas investment institutions to the Chinese market.

PUBLISH DATE:2019-10-10     Source:News Flash of Investment Promotion Platform, Iss. 17, 2019, (380 issues in total)
Supporting fields:Financial Industry

Currently, SAFE decides to lift the caps for investment scales by qualified overseas investing institutions and RMB qualified foreign institutional investors (hereinafter jointly referred to as “qualified overseas investors”). It is reported that the QFII system has experienced 5 rounds of limit expansion and 2 rounds of deregulation with qualification supervised by CSRC and caps supervised by SAFE. In 2005, 2007, 2012, 2013 and 2019, SAFE successively increased the total cap to USD 10 billion, 30 billion, 80 billion, 150 billion and 300 billion. The cancellation of caps by SAFE is undoubtedly the most significant measure of reform. Since now, qualified overseas investors only need to register as stipulated to conduct permitted securities investment activities with spontaneous fund remittal. The Provisions on the Foreign Exchange Administration of Domestic Securities Investment by Qualified Foreign Institutional Investors and other relevant regulations will be gradually introduced. Registration and approval for investment caps of qualified overseas investors will no longer be conducted separately.