Quotas on Chinese investments abroad will more than double with the rollout of two pilot programs aimed at relaxing capital controls and opening China’s financial markets, the state forex regulator said yesterday.
The quota defined by the Qualified Domestic Limited Partnership (QDLP) will rise from $2 billion to $5 billion, which as Caixin Global notes, will be the first increase since the program was introduced in Shanghai in 2013. The sister program in Shenzhen, the Qualified Domestic Investment Enterprises (QDIE), will also double to $5 billion from $2.5 billion.
Under the QDLP Chinese investors can buy overseas securities in private equity funds, hedge funds and real estate investments trusts, whereas the QDLE allows for the purchase of property and non-publicly traded bonds.