China grants smallest foreign investment quotas in 1-1/2 years in April

SHANGHAI Thu May 16, 2013 4:03am EDT

SHANGHAI May 16 (Reuters) - China's foreign exchange regulator said on Thursday it granted a net $137 million in new investment quotas to overseas institutions in April, the smallest monthly amount since September 2011.

The figure is a big drop from the $910 million of quotas the State Administration of Foreign Exchange (SAFE) granted to 11 institutions in March under the Qualified Foreign Institutional Investor (QFII) scheme.

Since last year, China has accelerated expansion of the QFII scheme, which is a quota-based system that allows foreign institutions to buy Chinese stocks and bonds, as part of efforts to deepen capital markets reform.

The SAFE announcement, published on its website, did not elaborate.

Two investors, EJS Investment Management S.A. and Taiwan's Fuh Hwa Securities Investment Trust Co. Ltd obtained new quotas last month. For a complete table, see