China's RQFII scheme to cover Hong Kong

The Hong Kong Monetary Authority said on Thursday that China is likely to allow Hong Kong-based financial institutions to participate in the renminbi qualified foreign institutional investor (RQFII) scheme that allows offshore yuan to be reinvested in the mainland, South China Morning Post reported. Norman Chan Tak-lam, chief executive of the authority, said the chairman of the China Securities Regulatory Commission (CSRC) Guo Shuqing had expressed his support for the widening of the eligibility criteria. The scheme is currently restricted to foreign units of mainland financial institutions. Extension of the scheme would be subject to further consideration among other authorities, Chan said. “We can’t estimate the time frame, but we hope that the qualification of applicants could be clarified when the new quota is granted,” he said.