China plans to increase the quota of its Renminbi Qualified Foreign Institutional Investor (RQFII) scheme by US$31.74 billion (RMB200 billion) due to strong investor demand, Bloomberg reported citing Guo Shuqing, the chairman of the China Securities Regulatory Commission (CSRC). The scheme, launched late last year, allows investors to raise yuan overseas and use the money to buy stocks and bonds on domestic markets. The current quota of US$11.2 billion (RMB70 billion) has not been sufficient to meet investor demand. CSRC is also working on loosening RQFII rules to allow more investors access to the scheme, Guo said during a briefing that was part of China’s 18th Communist Party Congress. The government has also sanctioned the securities watchdog’s plan to impose differential taxation on personal profits from securities trading, an aim to encourage long-term investment, state-run Xinhua reported.