China officially scrapped quota restrictions on two major inbound investment systems and simplified procedures for outbound remittances, the foreign exchange regulator and the central bank said on Thursday, reported Caixin.
Authorities decided last September to remove the quota limits for the Qualified Foreign Institutional Investor program and its sibling, the RMB Qualified Foreign Institutional Investor program — widely known as QFII and RQFII ― after more channels were made available for foreign investors to participate in China’s financial markets without quota limits.
Now qualified foreign investors need only to go through a registration process to wire money into and out of the country, the State Administration of Foreign Exchange (SAFE) and the central bank said Thursday in a joint statement.
China introduced the QFII system in 2002 and RQFII in 2011 to encourage foreign participation in its financial markets. More than 400 institutional investors from 31 countries have invested in China’s financial markets through the programs, according to SAFE.