Foreign investment quotas set to expand

Investment quotas for mainland equities markets under the qualified foreign institutional investor (QFII) scheme will be expanded to US$30 billion from the current US$10 billion, said Shang Fulin, Chairman of China Securities Regulatory Commission at a press conference during the 17th Communist Party Congress, China Securities News reported (in Chinese). Analysts told the newspaper that more foreign investment in China's domestic market could help improve the A-share market's investment structure and introduce advanced investment concepts. As of 2006 there were 52 foreign institutions operating under the program, holding about US$13 billion in trading value in the market.