Apr. 5, 2012 (China Knowledge) - The China Securities Regulatory Commission
, or CSRC
, the country's stock market watchdog, has increased the quota for Qualified Foreign Institutional Investors
, or QFII
, to US$80 billion from US$30 billion.
The quota of Renminbi Qualified Foreign Institutional Investors
, or RQFII
, has expanded by RMB 50 billion to RMB 70 billion. CSRC
had granted a total of US$24.6 billion in quotas to 129 overseas companies as of Mar. 31, 2012, and 75% of the assets were invested in Chinese stocks.
Last month, the Chinese regulator granted a record US$2.1 billion of quotas to 15 companies, more than US$1.9 billion CSRC
granted in the whole year of 2011.
program, launched in 2003, is the only method through which foreign investors can trade China's domestically listed RMB-denominated A shares
After obtaining approval from the CSRC
, a QFII
must wait for the State Administration of Foreign Exchange
to approve an investment quota before the foreign investor can start making securities investments in China.