China’s foreign exchange regulator allocated an additional $9.02 billion of foreign investment quotas to qualified domestic investors to encourage more investment abroad, reported Caixin.
According to the State Administration of Foreign Exchange (SAFE), 90% of the newly issued quotas, or $8.15 billion, were granted to mutual fund companies. As of Jan. 13, China has allocated a total of $125.7 billion of overseas investment quotas to financial institutions under the Qualified Domestic Institutional Investors (QDII) program, SAFE said.
The QDII program was launched in 2006 to allow qualified domestic institutions to invest in overseas capital markets. These include commercial banks, insurance companies, securities firms and fund managers. They act as conduits for channeling funds into offshore investments, said Caixin.