China will double the amount of mainland equities overseas institutions can buy through the country’s main foreign investment channel, the foreign exchange regulator said, making further progress on commitments to boost financial market access.
Caixin reports that the quota for participants of the Qualified Foreign Institutional Investor (QFII) program, founded in 2002 as a limited route to Chinese A-shares, will rise to $300 billion from $150 billion, effective immediately.
This will be the first quota increase in over five years, when the limit was raised from $80 billion.
China has been making efforts to open its markets to outside capital, partly due to pressure from overseas administrations but also to reverse a grim period of decline for onshore equities. China’s two main stock indices were among the worst performing in the world in 2018.