China has given the go ahead for record amounts of money to leave the country through official investment schemes, reported the Financial Times. The approvals come amid the increasing liberalization of the local financial system by Chinese authorities.
The nation’s qualified domestic institutional investor (QDII) scheme saw the addition of a cumulative $147 billion in approvals, allowing investors to access assets outside the Chinese mainland through banks and other institutions.
The scheme, launched in 2006 and mainly used by China’s retail investors, received the approval of $10 billion in new QDII allocation, the largest single amount in its history.
The move to allow more capital to leave the country came as policymakers have increasingly voiced concerns over high asset prices, as well as a rally in the renminbi. Due to strict controls on its capital account, China’s vast household savings are primarily funneled into domestic markets.