Foreign investors will be allowed to up their investments in China's stock markets under a new formula for determining inbound portfolio investment, the South China Morning Post reported. A regulatory source said that foreign portfolio investment will be set at 5-10% of the total capitalization of the A-share market. With the market now valued at around US$1.4 trillion, potential inward foreign investment could be anything between US$55 billion and US$120 billion. The source said this would be allowed to flow in gradually over eight to 10 years. Under the current system, the securities and currency regulators submit a proposal for a quota on portfolio inflows to the State Council. The Qualified Foreign Institutional Investor scheme was launched in 2003 and now permits 48 selected institutions to invest US$10 billion in equity and debt markets.