China securities regulator says to improve rules for QFII scheme

BEIJING, March 28 Fri Mar 28, 2014 6:02am EDT

Related Topics

BEIJING, March 28 (Reuters) - China will further improve management and tax policies for the Qualified Foreign Institutional Investor (QFII) programme to attract more foreign investment into the country's capital markets, the securities regulator said on Friday.

The China Securities Regulatory Commission (CSRC) also said at a regular briefing that there was still strong demand from institutions to join the Renminbi Qualified Foreign Institutional Investor (RQFII) scheme, dismissing talk of decreased applications for quotas.

"We will work together with related agencies to enhance coordination to improve policies on foreign exchange management and income tax," Zhang Xiaojun, spokesman of the CSRC, told reporters.

"Against the backdrop of China's increasing economic strength and a further opening-up of its capital markets, there is still very big demand from foreign investors," Zhang said.

Xiao Gang, chairman of the CSRC, said two weeks ago that China would expand QFII quotas this year. As of end-February, China had issued total quotas of $52.3 billion under the QFII programme and 180.4 billion yuan ($29 billion) under the RQFII programme, which allows investments using offshore yuan.

China also relaxed rules to allow more foreign participation in its main stock market last week.

The QFII and RQFII schemes are the main channels of foreign investment in China's stock markets. (Reporting By Zhang Xiaochong and Jonathan Standing; Editing by Jacqueline Wong)

FILED UNDER: