Chinese banks allowed to invest in UK market

Chinese citizens will be allowed to invest in the UK stock market through their local banks, as Chinese commercial banks will be permitted to buy UK stocks and mutual funds under an expansion of China's Qualified Domestic Institutional Investor (QDII) program, the Wall Street Journal reported. China's banking regulator also said it agreed in principle with US regulators to sign a similar pact to allow Chinese commercial banks to buy US securities. The continued opening of the QDII program is thought to be aimed at helping Chinese banks expand their investment portfolios, as well as letting capital flow out of China to address the country's large balance of payments surplus.