China’s financial regulators are discussing policy changes that would allow foreign asset managers to raise more funds from mainland Chinese investors to buy overseas securities, Caixin Global reports, as part of China’s heavily-touted march toward financial market liberalization.
The changes under consideration would raise quotas outlined in the Qualified Domestic Limited Partnership, a program introduced five years ago as a trial that has not since been adjusted at time of writing.
Governor of the People’s Bank of China Yi Gang hinted to his approval of the possibility of further cross-border capital flows at the annual Boao Forum in Shanghai. “We hope (cross-border) capital flows to be stable, which will help with the allocation of global assets,” he said.
“Chinese investors’ global asset allocations have been relatively low. With China further opening up to the outside world, Chinese individuals and institutions will be able to invest more in global assets.”