Chinese regulators have accelerated approval for foreign funds looking to invest in domestic capital markets under its Qualified Foreign Institutional Investor (QFII) system as the country seeks to offset slowing investment inflows and liberalize capital markets, Reuters reported. The foreign exchange regulator has approved 23 foreign funds to invest a total of US$2.9 billion so far this year, bringing the QFII program’s total quota to US$24.6 billion for 129 foreign investors. The State Administration of Foreign Exchange also said it had cancelled QFII quotas for two foreign institutions, though it gave no further details. Launched in 2003, the QFII program is one component of Beijing’s plan to gradually liberalize its otherwise tight controls over capital flowing in and out of the country.
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