China allocated more than $9.02 billion of quotas to domestic trust companies in the Qualified Domestic Institutional Investors (QDII) program as the country encourages domestic institutions to pour more money into foreign capital markets, reported Caixin.
As of Nov. 30, the State Administration of Foreign Exchange (SAFE) allocated the QDII quotas to 24 trust companies, among which five received a quota for the first time.
SAFE said in October that it would issue about $10 billion of new QDII quotas in several batches after it issued $3.36 billion of new quotas in September, the first in a year and a half. The annual total quota in 2020 would represent a 10% expansion of the program, said Caixin.
QDIIs are domestic institutional investors that have obtained approval from regulators to invest in offshore securities and bonds under a system first launched in 2006 and overseen by the China Securities Regulatory Commission and the China Banking and Insurance Regulatory Commission.