QFIIs get quota boost

China's State Administration of Foreign Exchange has granted additional investment quotas to three qualified foreign institutional investors (QFIIs), saying the institutions have become an important force in the domestic capital market. The move brings the total investment quotas of the QFII scheme, which allows foreign investors to trade in China's RMB-denominated A shares and bonds, to US$2.725 billion. The three QFIIs involved are UBS Limited, Citigroup Global Markets Limited and Nikko Asset Management Co Ltd, each of whom secured an additional US$200 million quota. Since the QFII scheme was announced in late 2002, 20 overseas institutions have won a QFII licence, of which 17 have seen their investment quota applications approved.