China plans to allow domestic trust firms to take part in the qualified domestic institutional investor (QDII) scheme as part of efforts to attract funds to invest in overseas markets. Trust firms on the mainland would be allowed to apply for QDII quotas, according to the China Banking Regulatory Commission and the State Administration of Foreign Exchange, the South China Morning Post reported. The People's Bank of China issued rules on QDII in April last year, allowing commercial banks to convert renminbi for overseas investments, but with the booming stock markets and the yuan's rising value, QDII products have not been popular. The government also announced recently that the QDII scope would be further expanded this year to include investments in more types of products.
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