China expands RQFII to HK-registered firms

China expanded its Renminbi Qualified Foreign Institutional Investor (RQFII) program to allow institutions registered in Hong Kong to raise yuan offshore for investment in the mainland, Bloomberg reported. Financial firms registered in Hong Kong and the Hong Kong units of Chinese banks and insurers will be allowed to join units of Chinese brokerages and fund-management firms in the program, the China Securities Regulatory Commission said in a statement on its website. The regulator also expanded the range of products available under the program to exchange-traded stock funds and bonds. Major foreign financial institutions, including London-based Standard Chartered (STAN.LON), welcomed the news.