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China eases restrictions on foreign investors’ capital flows

The State Administration of Foreign Exchange published new revised rules that will allow foreign investors to transfer money overseas more easily, taking immediate effect.

As Caixin reports, the rules put an end to the previous 20% monthly cap on moving assets out of China’s mainland, as stipulated by the Qualified Foreign Institutional Investor (QFII) program, as well as other features such as the three-month lockup period for investments.

Investors participating in the program, and its yuan-denominated version RQFII, will be free to move money between Chinese and overseas accounts depending on their requirements and can hedge against movements in foreign exchange.

According to official data, QFII and RQFII had received totals of $99.46 billion and $96.2 billion respectively as of the end of May.

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